USD/CAD Bears Drool Over Trendline Break

Chart prepared by Warren Venketas, IG Daily USD/CAD price action is trading at a key area of confluence, around the long-term trendline support (black) and the 1.3300 psychological level respectively. While the trendline support was breached yesterday, bears failed to close below the 1.3300 handle which could be the catalyst that fuels a push lower. The recent downside move has been subsequent to the death cross (red) formation and although the pair is nearing oversold territory as measured by the Relative Strength Index (RSI), there is still room for further downside to come. From a bullish perspective, a hawkish Fed announcement could invalidate the downside forecast and keep prices above trendline support exposing the 1.3407 swing low. Key resistance levels: 1.3407 Trendline support (black) Key support levels: 1.3300 1.3263 1.3226 1.3200 IG CLIENT SENTIMENT DATA: MIXED IGCS shows retail traders are currently LONG on USD/CAD , with 71% of traders currently holding long positions (as of this writing). At DailyFX we typically take a contrarian view to crowd sentiment but due to recent changes in long and short positioning we arrive at a short-term cautious disposition.