USD/CAD dropped like a rock in the short term and now is traded near a support area. Technically, the pair could turn to the upside again if the USDX jumps higher after the current decline.
The pair is trapped within a down channel which could represent a reversal pattern in the end. It remains to see what will really happen as the US and Canada are to release high-impact data during the week.
Better than expected US data and poor Canadian figures could boost the price. USD/CAD could resume its bearish movement if the United States data will disappoint.
USD/CAD At Support!USD/CAD is trapped between the descending pitchfork's upper median line (UML) and sliding line (SL). The pair was expected to develop an important upside movement after breaking out from the Falling Wedge pattern.
Failing to reach the falling wedge's pattern resistance and the S2 (1.2588) could bring a bullish momentum. Also, reaching these near-term support levels and registering only a false breakdown with great separation could represent a bullish signal as well.
Forecast!USD/CAD will be expected to approach and reach the upper median line (UML) if it closes above the S1 (1.2638). Also, a false breakdown through 1.2600 or any other reversal pattern around this downside obstacle brings a long opportunity.
A great buying opportunity will be activated and validated by a valid breakout above the upper median line (UML). So, jumping and stabilizing above the UML suggests buying with a first upside target at 1.2881 former high.