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Bearish Threat Still Present

  • RES 4: 1.2915 High Dec 23
  • RES 3: 1.2845/81 High Feb 4 / High Jan 28
  • RES 2: 1.2763/78 High Jan 12 / 50-day EMA
  • RES 1: 1.2746 High Feb 17
  • PRICE: 1.2600 @ 17:33 GMT Feb 23
  • SUP 1: 1.2581 Low Feb 22
  • SUP 2: 1.2590 Low Jan 21 and major support
  • SUP 3: 1.2547 Bear channel base drawn off the Jun 26, 2020 high
  • SUP 4: 1.2528 Low Apr 17, 2018

USDCAD found support last week at 1.2610, Feb 16 low, but this gave way into the Friday close. The recent move lower is seen as a deeper corrective pullback however price has cleared 1.2686, Jan 27 low and a key S/T level. This is a bearish development and exposes the Jan 21 low of 1.2590 that also marks a bear trigger. Clearance of this level would resume the underlying downtrend. A 1.2881 break, Jan 28 high is required to reinstate bullish activity. 1.2763 is a firm resistance.

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