Yesterday the USD/CAD traded slightly higher and closed the day in positive territory near the price of C$1.2865. Today it was trading in a narrow range of C$1.2865-75, staying close to yesterday's closing price. On the hourly chart, USD/CAD is still testing resistance - the moving average line MA (200) H1 (С$1.2840). On the four-hour chart, the pair is still below the MA 200 H4 line. Based on the foregoing, it is probably worth sticking to the south direction in trading, and while the USD/CAD remains below MA 200 H1, it may be necessary to look for entry points to sell at the end of the correction.
Resistances levels are at: С$1.2890, С$1.2910, С$1.2945
Support levels are at: С$1.2820, С$1.2755-65, С$1.2725
Probably, the main scenario is continued decline towards C$1.2820 (Aug 4 low).
An alternative scenario is a consolidation above the MA 200 H1 line, followed by a rise to С$1.2990 (Jul 19 high).
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