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Corrective Bounce

USDCAD TECHS
  • RES 4: 1.3010 High Nov 30
  • RES 3: 1.2957 High Dec 21 and a reversal trigger
  • RES 2: 1.2887 50-day EMA
  • RES 1: 1.2835 High Nov 11
  • PRICE: 1.2761 @ 06:46 GMT Jan 12
  • SUP 1: 1.2659/30 Low Jan 8 / Low Jan 6
  • SUP 2: 1.2603 1.236 proj of Oct 29 - Nov 9 downleg from Nov 13 high
  • SUP 3: 1.2586 Low Apr 19, 2018
  • SUP 4: 1.2536 1.382 proj of Oct 29 - Nov 9 downleg from Nov 13 high

USDCAD traded higher yesterday extending the recovery off last week's low of 1.2630 on Jan 6. The underlying trend remains bearish and short-term gains are likely a correction. The recent break of 1.2688, Dec 15 low confirmed a resumption of the downtrend that has been in place since March 2020. A resumption of the trend would opent 1.2603, a Fibonacci projection. On the upside, a stronger correction would expose 1.2887, the 50-day EMA.

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