USD/CAD is Retracing

USD/CAD continued falling until it finally reached the support at 1.2740 and the pair bounced off of it. For a while it seemed that the pair would resume its move to the downside due to the shooting star and doji candlesticks that formed below the resistance at 1.2850 and although the pair did fall that did not last long. Currently USD/CAD has broken above 1.2850 and I think it will likely continue climbing until it reaches the next level of resistance around 1.2900 – 1.2950. I do not think, however, that this retracement is a signal that the bearish trend is over and I expect a further move to the downside once the pair reaches the aforementioned resistance level.