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Pierces Key Resistance

USDCAD TECHS
  • RES 4: 1.3462 High Jun 05
  • RES 3: 1.3441 61.8% retracement of the May 26 - Jul 14 downleg
  • RES 2: 1.3427 High Jun 07
  • RES 1: 1.3400 High Aug 07 and key resistance
  • PRICE: 1.3380 @ 16:00 BST Aug 7
  • SUP 1: 1.3291/57 50- and 20-day EMA values
  • SUP 2: 1.3151/3093 Low Jul 31 / 14 and the bear trigger
  • SUP 3: 1.3084 1.618 proj of the Apr 28 - May 8 - May 26 price swing
  • SUP 4: 1.3032 1.764 proj of the Apr 28 - May 8 - May 26 price swing

USDCAD short-term conditions remain bullish following last week’s strong recovery. Resistance at the 50-day EMA, which intersects at 1.3291, has been cleared. The move higher signalled scope for a test of the next key resistance at 1.3387, the Jul 7 high. This level has been pierced, a clear break would strengthen bullish conditions. Key support has been defined at 1.3093, the Jul 14 low. Initial support to watch is 1.3257, the 20-day EMA.

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