USDCAD Daily Analysis – January 4, 2018

USDCAD broke above the bearish trend line on the 4-hour chart, suggesting that consolidation for the downtrend from 1.2920 is underway. Range trading between 1.2499 and 1.2600 would likely be seen in a couple of days. As long as 1.2600 resistance holds, the downtrend could be expected to resume and another fall towards 1.2400 is still possible after the consolidation. Only break above 1.2600 resistance could signal completion of the downtrend.

USDCAD 4-hour chart