We can observe low volatility on the forex market during today's session, which is related to the holiday season. Nevertheless, the US dollar is slightly weakening against the Canadian one. Let's take a look at the technical situation on the USDCAD currency pair. Looking at the H4 interval, there is an upward trend from the end of October. However, the pair failed to break above the resistance at 1.2950, and the downward correction began. We should focus our attention on two support levels at the moment. The first support is being tested and results from the lower limit of the local 1:1 structure, marked with blue. The second support seems to be stronger, it is the zone at 1.2720. The area marked in green results from the lower limit of the wide 1:1 geometry, marked with a red rectangle, and the 38.2% Fibonacci retracement of the recent upward swing started in late October, as well as the lower limit of the upward channel. According to the classic of technical analysis, only negation of the mentioned zone could change the trend downward.
USDCAD H4 interval. Source: xStation5
