28.12.202117:45 Forex Analysis & Reviews: USD/CAD drop may end soon

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USD/CAD uptrend is still intact

The USD/CAD pair dropped after failing to stabilize above 1.2914 former high. A temporary decline was natural after its amazing upwards movement. The uptrend is still unharmed as the pair is traded far above the uptrend line.

The former low of 1.2766 represents a potential downside obstacle. As long as it stays above this level and above the uptrend line, USD/CAD could start increasing again. Testing and retesting these levels could bring new buying opportunities with a good risk-to-reward ratio. An eventual Stop Loss order could be hidden below these obstacles. A larger downside movement could be activated only by the USD/CAD's drop below the uptrend line.

USD/CAD trading conclusion

After its amazing fall, USD/CAD could start increasing again. Still, maybe we should wait for the rate to reach and retest the level of 1.2766 and the uptrend line to confirm them as downside obstacles.

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