FX.co ★ USD/CAD upside scenario still valid

USD/CAD uptrend retest

The USD/CAD pair dropped after failing to reach the 1.2791 former high. Technically, the pair could start increasing again as long as it stays above the uptrend line. Also, the 1.2676 lwvwl represents a downside obstacle.

After its last upwards movement, a minor retreat was somehow natural and expected. The current drop may help the buyers to search for new buying opportunities from around the uptrend line. Only dropping and stabilizing below the uptrend line may invalidate an upside continuation and announce a strong drop.

USD/CAD trading conclusion

USD/CAD could develop a new upside momentum trying to reach 1.2791 former high which represents an upside obstacle. Higher highs and higher lows indicate an uptrend. The current drop could be stopped by the uptrend line which represents a dynamic downside obstacle.

Jumping above the 1.2791 is expected to activate a larger upwards movement and bring new buying opportunities.