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Oil-Driven Bounce

USDCAD TECHS
  • RES 4: 1.2653 High Apr 21 and a key resistance
  • RES 3: 1.2535 High Apr 22
  • RES 2: 1.2501 76.4% of Apr 21 - Jun 1 sell-off
  • RES 1: 1.2495 High Jul 6
  • PRICE: 1.2478 @ 17:12 BST Jul 6
  • SUP 1: 1.2299/53 20-day EMA / Low Jun 23 and a key S/T support
  • SUP 2: 1.2157 Low Jun 16
  • SUP 3: 1.2057 Low Jun 7
  • SUP 4: 1.2007 Low May 18 and key support

Oil weakness gave markets the perfect excuse to send the pair higher Tuesday, with prices rallying through the Friday highs to narrow the gap with the 1.2501 Fib resistance. This keeps the trend condition bullish. A positive theme follows the recovery between Jun 1 - 21 that confirmed a reversal. The pair has also cleared the 50-day EMA reinforcing current conditions. A break of the Fibonacci retracement would open 1.2653, Apr 21 high and an important resistance. Initial firm support lies at 1.2253, Jun 23 low.

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