Non trend to trend?
The price of the USDCAD has now moved outside the “red box” where most of the price action has taken place over the last 3-4 weeks. The price has now moved below the lower end of that box between 1.25203-273. Traders will now start to use that area as risk. They won't want to see the price reenter the red box IF the sellers are taking control.
Now on the downside, the low has just reached 1.24991. That is just below the low from last week at 1.25015. It is also just below the 50% of the move up from the March 2021 low at 1.25052. There is some buying against that low. However, my focus is up at the 1.2520-273 area. Stay below keeps the sellers in control.
The clue now is can the sellers stay outside the “red box”. If so, there is more to go to the downside.