# USD/CAD Trend Line Retest (April 23, 2014)

Source: https://www.tradersway.com/resources/market-info/usd-cad-trend-line-retest-april-23-2014/
Language: en
Updated: 2014-04-23

USD/CAD recently broke below a rising trend line on its 4-hour time frame, thanks to weak US non-farm payrolls data and a downbeat FOMC meeting minutes release. However, the pair is showing signs of exhaustion from the selloff and may be ready to make a quick retracement before resuming its drop.



The Fibonacci retracement levels on the 4-hour time frame line up with the broken trend line support and may act as resistance moving forward. Stochastic is moving down from the overbought zone, indicating selling momentum.



![USD/CAD Trend Line Retest (April 23, 2014)]



Shorting at the 50% Fib, which is close to the 1.1100 major psychological resistance with a stop above the 61.8% Fib and a target of new lows could yield a good return on risk. Moving the stop to entry once price tests the previous lows around 1.0900 could help minimize exposure.



*By Kate Curtis from Trader’s Way*