Corrective Cycle Likely To Extend

• RES 4: 1.2783 76.4% retracement of the Mar 8 - Apr 5 bear leg
• RES 3: 1.2711 61.8% retracement of the Mar 8 - Apr 5 bear leg
• RES 2: 1.2699 High Mar 17
• RES 1: 1.2652 50.0% retracement of the Ma r 8 - Apr 5 bear leg
• PRICE: 1.2634 @ 21:57 BST Apr 11
• SUP 1: 1.2533 Low Apr 7
• SUP 2: 1.2479 Low Apr 6
• SUP 3: 1.2403/2395 Low Apr 5 / 1.0% 10-dma envelope
• SUP 4: 1.2387 Low Nov 10 2021

USDCAD traded higher Monday, extending last week’s reversal from 1.2403, the Apr 5 low. Price action on Apr 5, in Japanese candlestick terms, is a long-legged doji. This is a short-term reversal signal and continues to suggest scope for a move higher. The 50-day EMA, at 1.2628 and the 200 DMA, at 1.2622, have been breached, opening 1.2652 next, a Fibonacci retracement. Initial support to watch is at 1.2533, the Apr 7 low.