USD/CAD Price Analysis: Critical daily support under pressure

• USD/CAD broke daily dynamic support with a bearish engulfing candle.
• Bears seek a break of 1.24 the figure and below current support.

The US dollar is weaker and this gives prospects of a deeper test of the longer-term bullish correction on the USD/CAD charts. 

The following illustrates a bias to the upside should support hold up, or a deeper downside move on a break of structure. 

Weekly chart

The weekly chart offers a bullish scenario in the possibility of a weekly reverse head ad shoulders. 

For this to play out, we will need to see the weekly support hold at this juncture leading to a right-hand shoulder and the prospects of an upside breakout. 

Daily chart

Meanwhile, from a daily perspective, the price has room to go following the bearish engulfing breakout below the dynamic support. 

Bears can seek a deeper move into the demand area where they may struggle to fend off the bullish commitments.

However, should the bears penetrate below the structure, it would expose the downside and make a case for a deeper move below 1.24 the figure.