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Corrective Cycle Still In Play

USDCAD TECHS
  • RES 4: 1.2648 High Oct 6
  • RES 3: 1.2562 High Oct 8
  • RES 2: 1.2494 Low Sep 3 and recent breakout level and 50-day EMA
  • RES 1: 1.2480 High Nov 5
  • PRICE: 1.2446 @ 19:41 GMT Nov 5
  • SUP 1: 1.2352 Low Nov 1
  • SUP 2: 1.2288 Low Oct 21 and the bear trigger
  • SUP 3: 1.2253 Low Jun 23
  • SUP 4: 1.2229 76.4% retracement of the Jun - Aug rally

USDCAD maintains the past week's firmer tone. Gains are considered corrective though and recent activity still appears to be a bear flag. If correct, it reinforces the underlying bearish conditions and signals scope for a break lower near-term. A bearish theme follows the recent breach of the Jul 30 low of 1.2422 that has opened 1.2253 next, Jun 23 low. Moving average conditions remain in a bear mode. Initial firm resistance is seen at 1.2494.

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