USD/CAD Pair Started a Downside Correction from 1.2575 High

The US Dollar started a decent increase above the 1.2480 resistance zone against the Canadian Dollar. The USD/CAD pair even broke the 1.2500 resistance to move into a positive zone.

The bulls pushed the pair above the 1.2550 level and there was a close above the 50 hourly simple moving average. The pair traded as high as 1.2575 before it started a downside correction.

There was a break below the 1.2550 level, but there is a strong support waiting near the 1.2500 zone. There is also a key bullish trend line forming with support near 1.2510 on the hourly chart. Any more losses might lead USD/CAD towards 1.2450 on FXOpen.

On the upside, an initial resistance is near the 1.2550 level. A clear break above the 1.2550 resistance could set the pace for a larger increase towards the 1.2620 level.

August 05, 2021 at 12:52AM
FXOpen
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