Daily Forex Update: USD/CAD

The USD/CAD has transitioned to a sideways market cycle after price action was rejected at the intraday double top between 1.0438 (R1) and 1.0430 (R2). This allowed the bears to shift intraday market sentiment lower, and allowed the strong three-day rally in the USD/CAD to reverse lower towards the 1.0300 level. The idea behind most reversals is that the trend is either broken or has shifted – the latter is exactly the case on this 60-minute chart. This is confirmed by Autochartist’s low, two-bar Initial Trend reading, which points to a non-trending market direction.