USD/CAD – Will It Continues Lower?

Strategy
Sell if price break support at 1.3985 for 1.3855. Stop above 1.4065.

Overview
Last night, price reached a low of 1.3993 after coming off from 1.4265. The rally to 1.4265 was in a 3-wave structure and was corrective in nature. The decline to last night low could be the start of another decline or it could be part of a bigger correction.
So far today, price reached a high of 1.4115, which was the former support turned into a resistance line as well as the 50EMA point. Price was capped by these two resistance points and is heading lower. The first support is at last night’s low of 1.3993 and a another previous low at 1.3985. If price were to move below 1.3985, it could be a hint of a deeper correction and is likely to bring price back to 1.3855. Watch the support at 1.3985.

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