USDCAD currency pair since setting the high in the vicinity of 1.3380 has been moving in a downward channel, which is a correction of a wider upward trend. As you can see on the daily chart below, in the past week we were witnessing another rebound from the resistance of the channel. As a result of this move, the rate is now approaching the growth trend line running from the current, this year’s minimum. From the technical point of view, much now depends on the result of a potential test of the trend line mentioned above.
If the test proves to be positive and additionally the buyers manage to break the upper limit of the channel, there will be an increased chance of moving towards the resistance at 1.3380. In turn, if the pair will overcome the trend line and the area within 1.2962, the course may again test the lower channel limit. The key horizontal support zone is close to 1.2750.