USD/CAD is likely to rise as the price is located above the uptrend line. It has failed to retest it in the last attempts. The uptrend line is seen as a downside obstacle (support), while the former high of 1.2579 is seen as an upside obstacle (resistance).
The pair is located in a neutral zone, so a drop below the uptrend line and under 1.2491 immediate low could signal a potential downside movement. On the other hand, staying above the uptrend line and jumping above 1.2579 immediate high could signal an upside continuation.
Conclusion
We may have a buying opportunity if USD/CAD jumps above 1.2579 and through 1.2600 psychological level.
The material has been provided by InstaForex Company - www.instaforex.com