USDCAD approaching resistance, potential drop!

USDCAD is approaching our first resistance at 1.2861 (horizontal overlap resistance, 78.6% Fibonacci retracement, 100% Fibonacci extension). A strong reaction might occur below this level, pushing price down to our major support at 1.2653 (horizontal overlap support, 61.8% Fibonacci retracement).

Stochastic (89) is also approaching our major resistance and a reaction off this level might be a good precursor for a potential drop in price.

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