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Bearish Trend Conditions Remains Intact

  • RES 4: 1.2876 High Dec 28
  • RES 3: 1.2830/35 50-day EMA / High Nov 11
  • RES 2: 1.2799 High Jan 18 and a key resistance
  • RES 1: 1.2741 High Jan 22
  • PRICE: 1.2689 @ 06:47 GMT Jan 25
  • SUP 1: 1.2590 Low Jan 21
  • SUP 2: 1.2586 Low Apr 19, 2018
  • SUP 3: 1.2579 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 last week at 1.2590, affirming further the underlying downtrend. The breach maintains the bearish price sequence of lower lows and lower highs. Moving average 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.

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