The structure of the USDCAD pair hints at the formation of a downtrend that moves inside the green channel.
We see that since the beginning of August, the market has been moving from the lower green line to the upper green line within the ascending yellow channel. Recently, the price touched the upper green line, then we saw a slight rebound from this wall.
There is a high probability that the bulls will again lead the price up in the direction of the resistance level of 1.306. If this price level breaks, the bullish trend may continue to the next important resistance level of 1.334, which is located on the upper yellow line.
Alternatively, a downward movement of the market is assumed. With sufficient strength of the bears, there is a risk of a breakdown of the support level of 1.294, especially since the price is very close to this level. If the lower yellow wall is broken, then the downward trend will continue its development in the direction of the lower green line and the support level of 1.263.
An approximate scheme of possible future movement is shown on the chart.
When confirming a bullish trend, it is recommended to consider opening deals for purchases. If the second option is confirmed on the market, then it is recommended to consider opening sales transactions.
