Bullish Engulfing Candle

• RES 4: 1.2964 High Dec 20 and the bull trigger
• RES 3: 1.2924 High Dec 22
• RES 2: 1.2848 High Dec 27 and a key near-term resistance
• RES 1: 1.2779 High Jan 4
• PRICE: 1.2702 @ 17:07 GMT Jan 4
• SUP 1: 1.2621 Low Dec 31
• SUP 2: 1.2608 Low Dec 8 and key support
• SUP 3: 1.2585 Low Nov 19
• SUP 4: 1.2546 Low 61.8% retracement of the Oct - Dec rally

USDCAD traded higher Monday, but has faded since. Nonetheless markets remains well above the low that resulted from the sharp sell-off on Dec 31. From a candlestick perspective, Monday’s rally appears to be a bullish engulfing candle. If correct, this signals a potential base at 1.2621, last week’s low. A resumption of strength would open 1.2848, the Dec 27 high and a key near-term resistance. On the downside, a break of 1.2621 would cancel the reversal pattern and instead open 1.2608, the Dec 8 low.]