Technical Analysis
We can see that USDCAD has been in an overall down trend for the past two weeks. Currently it is testing an up trend line which makes up the upward move all the way from September. We can also see that the price had slided down earlier through Fibonacci 23.6 level in the previous week’s candle.
Trading Preference
If the pair is bearish in the short-term. Therefore, a break below the up trend line could send the pair looking for 38.2% which is around 1.2588. If that level is also broken, the zone between 1.25 and 1.24 is a strong support area, that could offer some buying opportunities.
