USDCAD bulls gave a big fight around the key support area of 1.2580 but in the end they lost it. Price has provided us with a bearish signal. The entire upward move from 1.20 is most probably complete and we are now in a corrective pull back phase for USDCAD.
Green lines- Fibonacci retracements
USDCAD has broken below the 38% Fibonacci retracement level and the red upward sloping support trend line. Both these conditions are bearish signals. Usually when price breaks below the 38% Fibonacci retracement then we see a move towards the 61.8% Fibonacci level. So more downside should be expected in USDCAD over the coming days.
