In our previous posts on USDCAD we warned bulls that price was challenging important Fibonacci resistance and that a turnaround lower was justified and highly probable. Price made a high at 1.2795 and turned lower towards 1.2654, while now price is at 1.2698.
Green line- support trend line
USDCAD turned around at the 61.8% Fibonacci retracement. Price got rejected as expected at that major Fibonacci resistance level and turned lower towards the green support trend line connecting the major low at 1.2451 to the more recent low at 1.2558. Price technically remains in a bullish trend making higher highs and higher lows. Price today formed a higher low at 1.2654. Thus far this is considered a higher low and as long as price holds above the green support trend line, bulls have hopes for a new higher high above 1.2795.
