USDCAD: Weekly Chart Signals Imminent Downside Breakout

Although we are considering a time frame of only a few weeks rather than several months for this trade, the Weekly Chart is most suitable for depicting the chart pattern in USDCAD. Since September 2022, or for a year and a half now, the price has been in a consolidation zone. Neither the bulls nor the bears have succeeded in moving USDCAD sustainably in one direction thus far. However, pronounced hidden bearish divergences are now evident, notably on the Weekly Chart, in indicators such as VOLD and OBV (I have omitted the display of OBV as it essentially indicates the same as VOLD). Consequently, we anticipate a significant and likely vigorous downside breakout of USDCAD in the near future. We are capitalizing on this trading opportunity as it offers us a favorable Risk-Reward Ratio (RRR) of approximately 2.1:1.