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Bullish Trend Structure

USDCAD TECHS
  • RES 4: 1.3661 High Nov 27
  • RES 3: 1.3623 61.8% retracement of the Nov 1 - Dec 27 bear leg
  • RES 2: 1.3608 High Dec 13
  • RES 1: 1.3542 High Jan 17
  • PRICE: 1.3492 @ 16:53 GMT Jan 25
  • SUP 1: 1.3430/3343 20-day EMA / Low Jan 12
  • SUP 2: 1.3288/3177 Low Jan 5 / Low Dec 27
  • SUP 3: 1.3093 Low Jul 14 and key support
  • SUP 4: 1.3158 2.0% 10-dma envelope

USDCAD maintains a firmer tone and the latest recovery reinforces a bullish theme. Price has traded above the 50-day EMA, at 1.3461, and sights are on resistance at 1.3542, the Jan 17 high and bull trigger. A break of this level would confirm a resumption of the bull cycle that started Dec 27 and open 1.3623, 61.8% of the Nov 1 - Dec 27 bear leg. Initial support is 1.3430, the 20-day EMA.

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