On the daily chart, the pair recovered above the "round" level of 1.2600. If the pair is fixed above 1.2600, the short-term movement below will look like a false breakdown. Since previously favorable economic data and high energy prices were not enough to strengthen the Canadian dollar (the pair has remained above 1.2600 since the beginning of September), one of the short-term support factors will disappear with a decrease in energy prices. Nevertheless, while the sequence of decreasing relative highs and lows has been maintained since September 20, the growth trend has disappeared, judging by the directional movement indicators: DM+ and DM- have equalized, the MACD histogram is declining in the negative zone, the MACD line has a negative slope. According to more short-term indicators, they do not come out of fluctuations in the range.
On the four-hour chart, the decline has stopped: the pair has recovered above the important support at 1.2600, the sequence of declines in relative highs and lows has been disrupted. The 1.2600 level was overcome from below after the formation of a bullish divergence of the lows of the pair and the MACD histogram. This may be a confirmation of the reversal signal. Now there is a slight consolidation above 1.2600. Further movement in the short term is likely to be towards the exit either below 1.2600 or above 1.2655.
Resistance levels: 1.2655; 1.2700
Support levels: 1.2600; 1.2545