FX.co ★ USDCAD facing bearish pressure, potential downside!

Price has recently made a bearish breakout off the uptrend and is currently approaching the 1st resistance at 1.25256 which is in line with the horizontal overlap resistance and the 23.6% Fibonacci retracement level. We can expect price to resist and take support at the 1.24221 level which is in line with a horizontal swing low and the 78.6% Fibonacci retracement level. Alternatively, price may make a bullish breakout of the 1.25256 level to rise to the 2nd resistance in line with the 50% Fibonacci retracement and 50% Fibonacci extension. Our bearish bias is further supported by how price is holding below the Ichimoku cloud.