Bounce Considered Corrective

• 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: 1.3475/3521 High Feb 6 / 19 and key short-term resistance
• PRICE: 1.3420 @ 07:01 GMT Feb 7
• SUP 1: 1.3312/3262 Low Feb 3 / 2
• SUP 2: 1.3226 Low Nov 15 and bear trigger
• SUP 3: 1.3205 61.8% retracement of the Aug 11 - Oct 13 rally
• SUP 4: 1.3131 0.764 proj of the Oct 13 - Nov 15 - Dec 16 price swing

USDCAD has recovered from its recent low. However, bearish trend conditions remain intact despite the climb and short-term gains are most likely a correction. A resumption of weakness and a break of 1.3262, the Feb 2 low, would strengthen bearish conditions and signal scope for a move towards 1.3226, the Nov 13 low and the bear trigger. On the upside, the pair needs to clear 1.3521, the Jan 19 high, to signal a reversal.