FX.co ★ USD/CAD Up Channel Retest Signals Valid Breakdown!

USD/CAD is trading in the red after failing to close near 1.2575 today's high. The pair has increased in the short term to retest the broken uptrend line. Technically, the pair is expected to drop deeper.

We'll have to wait to see how the pair will react during the week. Personally, I believe that the US high-impact data could bring a clear direction. The US Non-Farm Employment Change could be decisive on Friday.

You should be careful these days as the ADP Non-Farm Employment Change, ISM Services PMI, Unemployment Claims, Average Hourly Earnings, and the Unemployment Rate could change the sentiment.

USD/CAD Minor Rebound!

USD/CAD has found support on the second warning line (WL2). Now, it has found resistance at the R1 (1.2574) and at the uptrend line. Actually, we have a confluence area formed at the intersection between these obstacles.

Its false breakout signals exhausted buyers. Another false breakout through the resistance levels, a pin bar, or a bearish engulfing could signal a downside movement.

Forecast!

Consolidation below the R1 (1.2574) and the weekly pivot point (1.2498) could signal a broader drop. Still, technically, only a drop below 1.2422 could lead to a major correction.