Shallow Bounce

• RES 4: 1.2881 High Jan 28
• RES 3: 1.2807/46 High Jul 19 / 1.236 proj of Jun 1 - 21- 23 swing
• RES 2: 1.2730 High Jul 20
• RES 1: 1.2607 High Jul 23
• PRICE: 1.2531 @ 17:51 BST Aug 10
• SUP 1: 1.2421 50-day EMA
• SUP 2: 1.2407 50.0% retracement of the Jun 1 - Jul 19 rally
• SUP 3: 1.2313 61.8% retracement of the Jun 1 - Jul 19 rally
• SUP 4: 1.2253 Low Jun 23

USDCAD bounced Friday, but the rally was insufficient to alter the outlook. This follows weakness that pressed the price through support at the 1.2500 handle, but managed to steer clear of key levels down at the 1.2421 50-day EMA. This reverses the positivity evident in the rise up toward recent highs at 1.2605, which markets need to top to initiate any further rally. A rise through here opens initial resistance at 1.2607, Jul 23 high. A break of this level would signal the resumption of bullish activity. To the downside, attention is on the 50-day EMA that intersects at 1.2421.