(Please click on the accompanying chart to enlarge.)
As of early Monday morning in New York, price action on the USD/CAD daily chart has continued a substantial retreat from a precise triple-test of the 1.3000 resistance level. In the process, price has formed a textbook shooting star candle pattern right at resistance. There has also been a tentative break of the steep uptrend support line that we have been watching for quite a few days now. In the event of continued strong downward momentum, the 1.2100 region, a significant prior support/resistance level that has been noted previously on this blog, serves as a key support target to the downside.
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