USD/CAD: correctional move needed before possible further drop

As it can be inferred from the graphical illustration, the price of USD/CAD has been dropping for a while. After a strong impulsive move, a correctional move is needed. The price is currently sitting at an area of crucial historical support. We are expecting for the price to consolidate for a bit, form a nice bottom, and keep rising in the short term. The target will be set at 1.267 level of resistance that perfectly lines up with 50% Fibonacci retracement level.

Happy trading, everyone!