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The USD/CAD pair is trading at the 1.2731 level after failing to stabilize above the 1.2800 psychological level. After jumping above the previous downtrend line, the pair developed an uptrend. It could resume its growth as long as it stays above the uptrend line.
The current decline could be only a temporary one. It could test and retest the uptrend line before jumping towards new highs. 1.2850 stands as a major upside target if the rate resumes its upwards movement.
Technically, only dropping and stabilizing below the uptrend line could signal that the upside movement is over and that USD/CAD could develop a new downtrend.
Normally, this could be only a temporary decline thhat could help the buyers could search for new buying opportunities from around the uptrend line with potetial upside target at the 1.2850. The Stop Loss order could be hidden somewhere below the uptrend line.
On the other hand, dropping below the uptrend line, testing and retesting the broken line could signal a downside movement.
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