Bearish Trend Conditions

• RES 4: 1.2834 50-day EMA
• RES 3: 1.2835 High Nov 11
• RES 2: 1.2799 High Jan 18 and a key resistance
• RES 1: 1.2728 20-day EMA
• PRICE: 1.2727 @ 17:50 GMT Jan 22
• SUP 1: 1.2590 Low Jan 21
• SUP 2: 1.2586 Low Apr 19, 2018
• SUP 3: 1.2576 1.0% 10-dma envelope
• SUP 4: 1.2536 1.382 proj of Oct 29 - Nov 9 downleg from Nov 13 high

USDCAD hit new cycle lows this week at 1.2590, affirming further the underlying downtrend - the breach maintains the bearish price sequence of lower lows and lower highs. MA studies are in a bear mode and further weakness appears likely with scope for 1.2586, the Apr 19, 2018 low. Firm resistance is located at 1.2799, Jan 18 high. A break of this hurdle is required to signal a short-term reversal and the start of a correction.