We can observe low volatility on the forex market during today's session, which is related to the holiday season. Nevertheless, the US dollar is slightly weakening against the Canadian one. Let's take a look at the technical situation on the USDCAD currency pair. Looking at the H4 interval, there is an upward trend from the end of October. However, the pair failed to break above the resistance at 1.2950, and the downward correction began. We should focus our attention on two support levels at the moment. The first support is being tested and results from the lower limit of the local 1:1 structure, marked with blue. The second support seems to be stronger, it is the zone at 1.2720. The area marked in green results from the lower limit of the wide 1:1 geometry, marked with a red rectangle, and the 38.2% Fibonacci retracement of the recent upward swing started in late October, as well as the lower limit of the upward channel. According to the classic of technical analysis, only negation of the mentioned zone could change the trend downward.
USDCAD H4 interval. Source: xStation5
Start investing today or test a free demo
Open account Try demo Download mobile app Download mobile appThis content has been created by XTB S.A. This service is provided by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, entered in the register of entrepreneurs of the National Court Register (Krajowy Rejestr Sądowy) conducted by District Court for the Capital City of Warsaw, XII Commercial Division of the National Court Register under KRS number 0000217580, REGON number 015803782 and Tax Identification Number (NIP) 527-24-43-955, with the fully paid up share capital in the amount of PLN 5.869.181,75. XTB S.A. conducts brokerage activities on the basis of the license granted by Polish Securities and Exchange Commission on 8th November 2005 No. DDM-M-4021-57-1/2005 and is supervised by Polish Supervision Authority.
