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Eyeing Key Resistance

USDCAD TECHS
  • RES 4: 1.3091 High Nov 24, 2020
  • RES 3: 1.3020/24 2.0% 10-dma env / 38.2% Mar ‘20-Jun ‘21 downleg
  • RES 2: 1.2949 High Aug 20 and a key resistance
  • RES 1: 1.2937 High Dec 15
  • PRICE: 1.2914 @ 06:51 GMT Dec 20
  • SUP 1: 1.2764/42 Low Dec 16 / 20-day EMA
  • SUP 2: 1.2706 Low Dec 13
  • SUP 3: 1.2608 Low Dec 8 and key support
  • SUP 4: 1.2585 Low Nov 19

USDCAD traded higher Wednesday and breached 1.2854, Dec 3 high and 1.2896, Sep 20 high. Key resistance however at 1.2949, Aug 20 high remains intact, although given the strong rally Friday and today’s gains, this resistance appears exposed. In pattern terms, Wednesday’s price action is a shooting star reversal candle and a concern for bulls. A break of 1.2949 would cancel the pattern and confirm an important technical break. Key support is 1.2764.

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