USD/CAD Price Analysis: Bears target a significant bearish extension

USD/CAD bears eye a run to test key areas on the downside.
Bears move in as US Dollar falls away.

Ross J Burland FXStreet

The Bank of Canada minutes have come out recently and the central bank agreed that fresh economic data would determine the need for further rate hikes. Nevertheless, the markets are pricing in a roughly 72% chance that the central bank will raise its policy rate by 25 basis points next month. Consequently, the CAD is bid while the Greenback is on the backfoot on a dovish Federal Reserve bias. This leaves the outlook bearish for USD/CAD as shown on the charts as follows:

USD/CAD daily charts

Zoomed in, we can see the price darting towards a test of the -272% Fibonacci level while on the front side of the bearish trendline. There are several key levels on the downside with the first in and around the -272% Fibo in the 1.3130s, the next in the 1.3070s and then the 1.3040s.

Author

Ross J Burland

FXStreet

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

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