USDCAD, after reaching a 14-month high at 1.3790, started a downward rally which lasts for almost 3 months. During this period, there were as many as 8 bearish candles and only two bullish ones with small bodies on the weekly chart. On Tuesday price has once again set new low while testing level 1.2480, where it has not been for 15 months.
Every trend must end or at least be corrected
At this point, there is an interesting opportunity to start a correction or even to complete current bearish trend. Such opportunity gives test of 1.2500 support level. This level played a very important role in ending dynamic sale in May 2016.
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If as expected this level will be reflected, then bulls will target 1.2690, 1.2840, 1.3000 levels. However, if bears are going to be on the top and a permanent break of 1.2500 will take place, the sell-off may go on a lot longer. The closest targets for supply after successfully breaking the indicated support will be the following support: 1.2200, 1.2000.
