USDCAD has been on a down trend since Dec 2020 when the major support on the 1.3000 broke.
The price has been moving within its .
A possible Bounce play could happen since the current price is now sitting on the channel support line and horizontal support line at 1.20900. If this level does not break, then there is a high probability of a bounce.
Another catalyst that could propel this move is the rate of the US this day.
If the data favors the USD, then we will see a bounce play happening for the upcoming days.
If the prices manages to breakdown the 1.20900 level, it will bring the price to the next support at 1.19200
If you like this idea or any comment about it, feel free to comment. I am happy to hear your thoughts.