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Bear Leg Extends

USDCAD TECHS
  • RES 4: 1.3751 High Nov 4
  • RES 3: 1.3705 Dec 16 and the bull trigger
  • RES 2: 1.3665 High Jan 6
  • RES 1: 1.3535 50-day EMA
  • PRICE: 1.3363 @ 16:05 GMT Jan 9
  • SUP 1: 1.3357 Low Jan 9
  • SUP 2: 1.3317 Low Nov 24 / 25
  • SUP 3: 1.3226 Low Nov 15 and bear trigger
  • SUP 4: 1.3205 61.8% retracement of the Aug 11 - Oct 13 rally

USDCAD finished the week on a distinctly bearish note and the pair traded lower still Monday. The move lower has exposed key support at the 1.3385 level - the Dec 5 low. A clear break of this level would strengthen bearish conditions and open 1.3317, the Nov 24 / 25 low. The bear trigger lies at 1.3226, the Nov 15 low. On the upside, key resistance is far-off at 1.3705, the Dec 16 high. Initial firm resistance is seen at 1.3535, the 50-day EMA.

MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com

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