USD/CAD Price Analysis: Bears could be about to pounce

• USD/CAD bears could be on the verge of an attack.
• The bears can eye a break to 1.2780 for the day ahead. 

As per the prior analysis, USD/CAD Price Analysis: Bears lurking and break below 1.2800 eyed, the price was going through a consolidative phase and price discovery. There was little bias to go on although there had been a lower high printed.

The price was holding up in the 1.2830s and a correction to mitigate the price imbalance between spot and 1.2865 was anticipated to result in further supply in order to break down the support of 1.2820. In doing so, this was going to leave the price imbalance between 1.2800 and 1.2780 exposed. 

USD/CAD H1, prior analysis

USD/CAD H1 target reached

As illustrated, the price moved in on the targetted level. However, the bulls came up for air again as follows:

USD/CAD H1 live market

The level proved to be a strong support area from which the price has rallied. However, the bulls have failed to print a higher high so far and should the price respect the trendline resistance, this could be the makings of a breakout to the downside in line with the original bearish scenario and to target a break of 1.2780.