The USDCAD breaches the resistance – Analysis - 25-01-2021

The USDCAD pair traded positively to breach 1.2688 level and settles above it, providing signals for the price’s recovery attempt in the upcoming sessions, but we notice that the price still below the bearish channel’s resistance at 1.2745, accompanied with the issuance of a clear overbought signals.

Therefore, the contradiction between the technical factors makes us prefer staying aside until the price confirmed breaching one of the above mentioned levels, then detecting its next trend clearly, pointing that the continuation of the upside track and breaching 1.2745 will lead the price to achieve more of the upside moves and visits 1.2854 level as a next positive target, while breaking 1.2688 represents the return key for the bearish trend that targets 1.2475 level as a next main station. 

The expected trading range for today is between 1.2640 support and 1.2800 resistance.

The expected trend for today: Neutral