Bulls are grazing on the bearish correction – Crypto News – Crypto News
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Despite CAD resilience this week, further weakness likely – Rabobank Despite CAD resilience this week, further weakness likely – Rabobank

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Bulls are grazing on the bearish correction – Crypto News

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  • USD/CAD bulls are starting to graze on the bearish correction.
  • Trendline support could well be respected leading to a bullish continuation.

The Canadian dollar edged higher against the US dollar on Monday as a deal to temporarily suspend the US debt ceiling boosted investor sentiment. Technically, however, the correction could be grazed upon by hungry bulls as the following will illustrate.

USD/CAD daily chart

The market is carving out a W-formation and with prospects of an upside continuation.

Zooming in, we can see that the price has rallied to make new highs only to correct back into the rally in a 50% mean reversion. This could encourage the bulls to reengage at a discount with the price respecting the trendline support.

USD/CAD H4 charts

From a lower time frame perspective, the price will need to clear the recent highs. This will mark a new bullish structure for the bulls to lean against in positioning for higher highs to come. On the other hand, a break of 1.3570-50 would be a bearish development.

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