USDCAD pair broke above the 1.2830 resistance zone on Monday but bulls were unable to hold onto these gains. More hawkish FED failed to support dollar as Evergrande risks fade. At the same time, traders digested the rather unsurprising outcome of the Canadian Federal elections, which saw Justin Trudeau remaining the leader of a minority government, thus falling short of his goal of attaining majority control. CAD strengthens during today’s session as risk moods improved. The pair is approaching major support zone around 1.2700 which coincides with 50 SMA (green line) and upward trendline. Should break lower occur, then near-term support zone to watch can be found in the 1.2635 area.
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