as we can see here on the USD/CAD
chart it has recently been having strong moves to the downside, after breaking down from the top support level
. this was all because of the recent US news with president trump which has caused the currency to weaken. now price is potentially trending in a downward channel
, and has tested the downward resistance trend line
and has moved down, to then lead to further moving past a support line / area. now price has settled and is moving back up to the previously broken area to hopefully use it as a resistance level
and then break down again. due to the nature of the trend and the broken support level
being very close to the 0.382 fib level, we should be looking for the market to test that area and with correct candle confirmation and indicators if needed, to then look for a sell to the downside.