The USD/CAD has been trading within a declining channel for the past few weeks. The price recently touched the support line and bounced off of it. It is showing a good long setup and looks to target the declining resistance line at 1.369, which is also where the 200 EMA is which makes this a very strong resistance and we do not expect this to be broken without a very strong definitive move.
If the price does decide to break the declining support then the chart will open up and the price could return to a swing set back in November at 1.302. The RSI looks to be forming a divergence also however, the candlestick has not closed yet, therefore we will wait until it closes to evaluate whether we are going to enter long or not.
