Trend is bearish in 4 hours time frame. Vital resistance is present at 1.3405 price level. Price has dropped lower and now I expect a bullish leg in price action – Wave e. Based on Elliott wave analysis, there is a possible Bearish running triangle present in USD/CAD. Right now, bearish Wave d leg looks in-complete and price is going to drop more to finish bearish d leg.
So, as long as price stays below 1.3405 resistance level, the trend is going to remain down and we could look for a sell trade. However; if price breaks above 1.3405 key resistance level then bearish trend is going to fail. In such case I will stay out of the market and re-analyze the price action in USD/CAD four hours chart.
