Looking at the USDCAD chart on the H4 interval, in terms of technical analysis, recently the quotes have been moving in a downward channel, thus being influenced by a wide head-and-shoulders formation. However, during today's session we can observe solid gains and an attack on the key resistance zone.
The area marked in purple at 1.26650 results from several factors. First of all, it is the upper limit of the aforementioned downtrend channel, as well as the 1:1 system. In addition, the internal 38.2% Fibonacci measure and previous price reactions are located here. If this level is defeated, the sentiment is likely to change to downward. Then the next targets for the market bulls will become the zones of 1.2755 and 1.2889 respectively. On the other hand, if the price returns below the area of 1.2665 and a downward signal appears here, it will not be excluded to generate another impulse towards the last minimums.
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USDCAD interval H4. Source: xStation5
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