USD/CAD Reached the Support at 1.2650 a Correction Began

 1.2650 is a very strong level of support, which I have mentioned several times in this blog so far. That support level is really quite obvious on the monthly time frame.

The pair reached that support, even managed to fall lower than it, but it quickly rebounded and began yet another corrective movement.

The RSI indicator on the daily time frame also suggested that there would be such a movement, since you can notice a strong divergence that has been forming on it since the beginning of March.

At the moment the pair is in the middle of the trend channel, which is quite obvious on the daily time frame. I expect that the move to the upside will continue until the resistance line of said trend channel, where it should bounce off of it and continue towards the support line.

Also, considering the fact that today is Friday and the market will close later today, I expect that the major move to the upside will happen next week.