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Corrective Bounce Finds Resistance

USDCAD TECHS
  • RES 4: 1.3071 2.0% 10-dma envelope
  • RES 3: 1.3029 High Nov 25
  • RES 2: 1.2964 50-day EMA
  • RES 1: 1.2957 High Dec 21
  • PRICE: 1.2820 @ 07:07 GMT Dec 29
  • SUP 1: 1.2777 Low Dec 21
  • SUP 2: 1.2688/77 Low Dec 15 / 76.4% of the 2017-20 uptrend
  • SUP 3: 1.2603 1.236 proj of Oct 29 - Nov 9 downleg from Nov 13 high
  • SUP 4: 1.2528 2.0% 10-dma envelope

USDCAD is slightly weaker. Near-term attention however remains on recent strength that highlights a corrective phase the pair has entered. This is allowing the recent oversold conditions to unwind. An extension higher would signal scope for a climb towards 1.2964 initially, the 50-day EMA. On the downside, clearance of 1.2688 would resume the downtrend. Initial support lies at 1.2777, Dec 21 low.

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