With this formation price could go either ways. If it breaks the current support level, price could fall to the 105.660 level. On the other hand, if it breaks the bearish trend, price could rise to the 109.150 level or beyond
Price broke through the 1.24200 Resistance Level and pulled back to retest it.
If this level holds up it could become a new support and push price to the 1.27575 level and potentialy the 1.30000 level.
Moreover, price action has been following an ascending impulse wave that could give us a 5th impulse confirmation.
Last week we saw USDCAD's price breaking the month-long bearish trend and retesting the major 1.40000 support level.
The most likely reaction is a rejection pushing price to Resistance 1 and potentially to Resistance 2 depending on the fundamental results.
What do you think?
