USDCAD Drop After Retest

As you see in the Daily time frame, USDCAD is in a strong downtrend and had a big drop in the past few weeks.

Currently, price is in the exhaustion phase and had a retest on the red resistance zone and got rejected.

On the other hand, price is between the resistance and support areas which is a no trade zone and we should wait for the momentum.

If price failed to break the red resistance area and dropped towards the yellow support zone around 1.3220 again, we can expect a continuation on the downside move to the next support level at 1.30