FX.co ★ USD/CAD analysis for December 01, 2021 - Potential for the bigger drop

Technical analysis:

USD/CAD has been trading downside as I expected yesterday. The price reached first downside objective target at 1,2730 but there is potential for even bigger drop.

Trading recommendation:

Due to fake breakout of the consolidation yesterday, I see potential for the bigger downside movement in the next period

Watch for selling opportunities on the rallies with thhe downside objectives at 1,2650 and 1,2630.

Stochastic is showing fresh bear cross, which is another sign and confirmation for the downside continuation.

Resistance is set at the price of 1,2775