USD/CAD Reached a Major Support Level

The fundamentals yesterday finally pushed USD/CAD below the support at 1.3200 and the pair continued falling, eventually forming a new low at 1.2944. More importantly, there is a very considerable level of support at 1.2950. In my opinion, the pair will either bounce off that level and continue climbing towards the resistance at 1.3200 – which used to be a support level – or it will break below 1.2950 and head towards the next support, which is at 1.2600 and coincides with the (MA)89 on the weekly time-frame. At this point both scenarios are equally valid and we will have to wait and see what candlesticks the pair will form at the support at 1.2950 to figure the direction USD/CAD is going to take.