USDCAD reacting at first resistance, potential for further drop!

Price is testing the descending trendline and our first resistance at 1.27416, which is in line with our 50% Fibonacci extension, 50% Fibonacci retracement and horizontal swing high resistance. It could potentially drop further to our first support at 1.26889, in line with our 50% Fibonacci extension and horizontal swing low support. It is also worth noting that the price is holding below EMA (55), which shows bearish pressure in line with our analysis.

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