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Short-Term Reversal Extends

USDCAD TECHS
  • RES 4: 1.3029 High Nov 25, 2020
  • RES 3: 1.2976 1.00 proj of the Jun 23 - Jul 19 - 30 price swing
  • RES 2: 1.2957 High Dec 21, 2020
  • RES 1: 1.2834/ 2949 High Aug 23 / High Aug 20 and the bull trigger
  • PRICE: 1.2599 @ 20:53 BST Aug 24
  • SUP 1: 1.2579 Low Aug 24
  • SUP 2: 1.2509 50-day EMA
  • SUP 3: 1.2422 Jul 30 low
  • SUP 4: 1.2303 Low Jul 6

USDCAD traded sharply lower Monday extending the pullback from Friday's high of 1.2949 and remains soft. From a pattern perspective, Friday's activity is a bearish shooting star candle. Monday's sell-off and particularly the weak close, reinforces this pattern and highlights a short-term reversal. Price has traded below 1.2603, the 20-day EMA and this opens 1.2509, the 50-day EMA. Key resistance has been defined at 1.2949.

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