USD/CAD Is Very Bearish

 

USD/CAD has been essentially in a state of free fall for over four months now, ever since the pair formed a doji candlestick and a shooting star candlestick on the weekly time-frame at the resistance at 1.3800 at the beginning of May this year. Today’s fundamentals – namely the Bank of Canada’s rate statement and the decision to hike the overnight rate to 1% from 0.75% - pushed the pair even further down and it reached a new low at 1.2140. Considering how bearish the overall trend is, even if there is a retracement after the latest drop the move to the downside will likely continue and its next target will probably be at 1.2000, which coincides with the (MA)89 indicator on the monthly time-frame.