- USD/CAD bears move in at the start of the week leaving a reversion pattern in play on the daily chart.
- The 1.2980s area is exposed as a key area in the bearish formation.
USD/CAD has started out the week on the wrong foot exposing territories in a prior resistance area that would be expected to offer some support for the days ahead. The following illustrates the meanwhile bearish bias.
USD/CAD daily chart
The W-formation is a reversion pattern that leaves the neckline exposed near 1.2980. Below there, the 1.2920s guard 1.2895 formation lows.
USD/CAD H1 chart
USD/CAD is meeting a near 61.8% Fibonacci retracement of the hourly bearish impulse near 1.3100 the figure with prospects of a downside continuation in the near future that would mitigate the space between the prior highs and current lows.