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Attention Is On Key Support

USDCAD TECHS
  • RES 4: 1.3029 High Nov 25
  • RES 3: 1.2957/33 High Dec 21/ 50-day EMA
  • RES 2: 1.2880 High Dec 24
  • RES 1: 1.2823 20-day EMA
  • PRICE: 1.2708 @ 06:30 GMT Jan 4
  • SUP 1: 1.2696 Intraday low
  • SUP 2: 1.2688/77 Low Dec 15 / 76.4% of the 2017-20 uptrend
  • SUP 3: 1.2603 1.236 proj of Oct 29 - Nov 9 downleg from Nov 13 high
  • SUP 4: 1.2566 2.0% 10-dma envelope

USDCAD maintained a weaker tone last week and has extended the move lower today. Recent attention has been on the period of strength between Dec 15 - 21 that highlights a corrective phase the pair has entered. If correct, this would allow a recent oversold condition to unwind. An extension higher would signal scope for a climb above 1.2933, the 50-day EMA. On the downside, clearance of 1.2688 would instead resume the downtrend.

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