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Despite price reaching new higher highs above 1.29, price formation last Friday was bearish as we mentioned in our analysis because of the reversal candlestick pattern. Price today remains under pressure and price is falling more than 100 pips lower.
USDCAD is trading below 1.27. Price is making a pull back after the topping candlestick pattern last Friday. Support by the upward sloping trend line is found at 1.2585 and I believe it is very likely to see price test this support level this week. It is important for bulls to defend this level in order to continue their upward move above 1.29.
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