Bearish USDCAD-analysis for the week of 04 MayUS Dollar vs CanadianICMARKETS:USDCADTranquilo1154Is it going to gap up or down when market opens for the week? No one knows so I want to say that there will be no gap and analyze this pair. This current war creates strange price movements, co-relations don’t seem to work, so best to just do a technical analysis knowing that price will respect what the charts are telling us. Recent price movements Undoubtedly this pair has been bearish for the past 4 weeks and I cannot see any reason why this trend should not continue. A support/resistance area (1.3600 – 1.3630) was formed recently and price broke below it with good momentum on Thu and a weak pullback followed on Fri. This looks like a nice breakout / pullback formation and I would like to trade this to the short side. All other time frames also support my bearish bias. Trade parameters These are times of fake news and a high level of market manipulation. Trading with smaller position size and giving extra space for stops is recommended. Gaps are regularly seen and anticipating the market open and initial moves is impossible. However, the following scenario would make sense: Entry – The pullback will likely continue for a while and evidence of bearish evidence would be the right location to enter. Stop – above the nearest major swing high (currently 1.3720). Target(s) depend on the trading style, but I have marked a couple of options. I would stay flexible and remain open to taking profit and re-entering if price action confirms a continued move. General comment Nothing in trading is ever 100%, so please allow price action to fully develop in your desired direction before executing a trade. This is not a trade recommendation