Source: PaxForex Premium Analytics Portal, Technical Insight

USD/CAD has witnessed a sheer downside after surrendering the critical support of 1.3442 in the Asian session. The loonie asset has dropped firmly below the round-level support of 1.3400 in the Tokyo session as a significant improvement in risk appetite has impacted the US Dollar.

Pivot: 1.3422

Analysis:

While the price is below 1.3500, follow the recommendations below:

• Time frame: D1
• Recommendation: short position
• Entry point: 1.3422
• Take Profit 1: 1.3300
• Take Profit 2: 1.3160

Alternative scenario:

If the level 1.3500 is broken-out, follow the recommendations below:

• Time frame: D1
• Recommendation: long position
• Entry point: 1.3500
• Take Profit 1: 1.3600
• Take Profit 2: 1.3750

Comment:

RSI shows the possibility of a downtrend in the medium term.

Key levels: