USDCAD is trading at 1.2672. Price has formed a lower high and is approaching key short-term support at 1.2650-1.2660. Breaking below this level will provide us with a new short-term sell signal. If this happens I prefer to be bearish with a stop at 1.2720 and first target at 1.2590.
Red lines -Fibonacci extension targets
USDCAD has the potential to move lower if short-term support is broken. If this happens, the Fibonacci extensions provide our targets. The most probable target is the 100% extension around 1.2590. For this scenario to remain valid, we do not want to see price push above the recent high of 1.2720.
