USD/CAD Price Analysis: Bulls need to move in at trendline support to guard against bearish breakout to 1.3500

• USD/CAD is at a crossroads, leaving into trendline support.
• A bullish continuation could be on the cards.

USD/CAD was unchanged on Wednesday despite domestic data that showed underlying inflation pressures picking up. However, from a technical perspective, the bias is to the upside as the following will illustrate.

In the prior analysis, USD/CAD Price Analysis: Bears moving in and eye 1.3600/20, it was noted that USD/CAD remained within a bull cycle trend but The price was decelerating on the bid and the bears were moving in.

There was a focus on a move into the 50% mean reversion and micro bullish trendline. The 61.8% ratio was just below and was expected to be tapped for a test of 1.3600 prior to the next bullish impulse. 

USD/CAD prior analysis

USD/CAD update, H4 and daily chart

The correction into the trendline is slowing and there are prospects of a continuation to the upside. Failing that, a peak formation could be put in, resiting in a break of the bullish cycle for the days ahead with eyes on 1.3500.