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Bear Threat Remains Present

USDCAD TECHS
  • RES 4: 1.4016 3.382 proj of the Aug 25 - Sep 7 - 13 price swing
  • RES 3: 1.4000 Psychological round number
  • RES 2: 1.3855/3977 High Oct 21 / 13 and the bull trigger
  • RES 1: 1.3808 High Nov 03
  • PRICE: 1.3520 @ 08:22 GMT Nov 4
  • SUP 1: 1.3638/3469 20-day EMA / Low Nov 7
  • SUP 2: 1.3409 Low Sep 22
  • SUP 3: 1.3358 Low Sep 21
  • SUP 4: 1.3227 Low Sep 20

USDCAD traded sharply lower Friday. Support at 1.3498, the 50-day EMA and 1.3496, the Oct 27 low, have been pierced. A clear break of this support zone would strengthen a bearish threat and likely trigger an extension of the downward cycle that started Oct 13. This would open 1.3409, the Sep 22 low. On the upside, initial firm resistance has been defined at 1.3808, last Thursday’s high.

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