USD/CAD Strong Demand Area!
The USD/CAD pair drops at the time of writing after failing to approach and reach the 1.3100 psychological level. Breaking below the minor uptrend line signals that the buyers are exhausted and that the price could come back down, trying to attract more buyers.
It was trading at the 1.2996 level at the time of writing. The 1.2960 historical level (former high) and the 1.2930 former low represent downside obstacles. Also, the major uptrend line stands as a downside obstacle. As long as it stays above these levels, USD/CAD could resume its growth.
USD/CAD Trading Conclusion!
The current drop could be only a temporary one. It could come back to test and retest the 1.2930 - 1.2960 area and the uptrend line before resuming its growth. The decline could bring new buying opportunities from around the downside obstacles.
An upside continuation after the minor retreat could be invalidated if the price drops and stabilizes below the major uptrend line.
