USDCAD is approaching our first resistance at 1.2815 (horizontal overlap resistance, 100% Fibonacci extension). A strong reaction might occur below this level, pushing price down to our major support at 1.2729 (horizontal swing low support, 100% Fibonacci extension). A breakout below our intermediate support at 1.2761 (horizontal swing low support, 61.8% Fibonacci retracement) might provide the bearish acceleration to our major support level.
Stochastic (55,5,3) is also approaching our major resistance and a reaction off this level might be a good precursor for a potential drop in price.
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