USD/CAD more declines still posible
The USD/CAD pair was traded at the 1.2686 level at the time of writing. As you can see on the H4 chart, the currency pair dropped below the uptrend line signaling that the upside movement is over and that it could develop strong downside movement.
USD/CAD developed a new downtrend. As long as it stays under the downtrend line, the price could drop towards new lows. The former low of 1.2620 represents a static downside obstacle. Only dropping and stabilizing below it may announce a larger downside movement. Staying above this level and jumping above the downtrend line may signal that the downside movement is over and that USD/CAD could climb higher.
USD/CAD trading conclusion
Staying under the downtrend line and dropping below 1.2620 could open the door for a larger downside movement. This scenario could bring new selling opportunities.
