As we explained in our last analysis, USDCAD price action looks like a short-term top and a swift pull back was imminent. Price made a new higher high but it was short lived and price broke the wedge pattern downwards. This pattern was explained in our last USDCAD analysis.
Red rectangle - short-term pull back target
USDCAD is moving lower after making a short-term top around 1.2630 area. Price is now at 1.2566 and is getting close to our short-term pull back target shown in the 1 hour chart above as a red rectangle. Resistance is now found at the lower boundary of the wedge pattern at 1.26 and as long as price is below that level, we remain confident that we will see 1.25 and maybe lower levels.
