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Corrective Pullback

USDCAD TECHS
  • RES 4: 1.3007 2.0% 10-dma envelope
  • RES 3: 1.2949 High Aug 20 and a key resistance
  • RES 2: 1.2896 High Sep 20
  • RES 1: 1.2854 High Dec 3
  • PRICE: 1.2655 @ 17:07 GMT Dec 7
  • SUP 1: 1.2635 Low Dec 7
  • SUP 2: 1.2623 1.0% 10-dma Envelope
  • SUP 3: 1.2597 50-day EMA
  • SUP 4: 1.2493 Low Nov 16

USDCAD has pulled further off recent highs. Short-term trend conditions remain bullish and the move lower is likely a correction. Support at 1.2714, Dec 1 low, has given way, suggesting scope for a deeper pullback. Vol-band based support next undercuts at 1.2623. A return higher would refocus attention on 1.2854, Dec 3 high where a break would again expose the next key resistance at 1.2896.

MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com

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