USDCAD recently reversed down from the strong resistance area lying between the key resistance level 1.33120 (former monthly high from October and November) and the upper daily Bollinger Band. The downward reversal from this resistance area stopped the earlier short-term ABC correction (ii). Given the strength of the aforementioned resistance area, overbought daily Stochastic indicator and the moderate bearish sentiment affecting US dollar today – USDCAD is likely to extend the losses toward the next support level 1.32500.
