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Corrective Bounce Reverses

USDCAD TECHS
  • RES 4: 1.3029 High Nov 25
  • RES 3: 1.3036 2.0% 10-dma envelope
  • RES 2: 1.2983 50-day EMA
  • RES 1: 1.2957 High Dec 21
  • PRICE: 1.2847 @ 16:36 GMT Dec 23
  • 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: 1.2525 2.0% 10-dma envelope

USDCAD traded well for the first part of the week, before sentiment reversed into the Wednesday close. Markets resumed the broad downtrend, confirming short-term gains as a correction, allowing the oversold conditions to unwind. An extension higher would signal scope for a climb towards 1.2983, the 50-day EMA. On the downside, clearance of 1.2688 would resume the downtrend. Initial support is at 1.2777, Dec 21 low.

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