USD/CAD registered an impressive drop recently. Now it has reached a demand zone or a support zone. 1.2606 - 1.2580 area was seen as a resistance area or as a supply zone. The pair has dropped from above 1.2900 psychological level and now it has touched this zone.
It has failed to retest the uptrend line signaling strong buyers. USD/CAD could develop an important growth as long as it stays above the uptrend line.
Trading Conclusion!
Technically, USD/CAD was expected to increase after the last massive drop. It could increase as long as it's located above the uptrend line. The 1.2606 - 1.2580 was seen as support or a demand zone from where the price could start increasing again.
1.2700 psychological level is seen as a first potential upside target.
