FX.co ★ USD/CAD upside reversal

USD/CAD downtrend line breakout

The USD/CAD pair registered strong growth in the short term and now is located above the downtrend line. Yesterday, it has climbed as high as 1.2676. This level stands as an upside obstacle. Technically, the rate slipped lower and now it tries to test and retest the broken downtrend line. Staying above it may signal an upside continuation.

Only dropping and stabilizing below the downtrend line may signal that the upside movement was only a temporary one and that sellers could push the rate down again.

USD/CAD trading conclusion

USD/CAD could develop an upside reversal if it stays above the downtrend line and if it jumps above 1.2676 yesterday's high. This scenario could also bring fresh buying opportunities.