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TECHS: Bull Flag Formation

  • RES 4: 1.3600 High Jul 20
  • RES 3: 1.3486 Low Jun 23 and a former breakout level
  • RES 2: 1.3460 High Jul 30
  • RES 1: 1.3419 High Sep 29 and the intraday bull trigger
  • PRICE: 1.3321 @ 17:24 BST Sep 30
  • SUP 1: 1.3284 Low Sep 22
  • SUP 2: 1.3270 20-day EMA
  • SUP 3: 1.3171 Low Sep 21
  • SUP 4: 1.3119 Low Sep 10 and key near-term support

USDCAD edged to new weekly lows Wednesday, but the drop has so far been insufficient to counter the bullish outlook. Recent consolidation appears to be a bull flag reinforcing a positive outlook. A bullish theme follows a break higher Sep 21 that confirmed a short-term corrective cycle. Furthermore, the recent break of 1.3259, Sep 9 high highlights a clear bullish price sequence of higher highs and higher lows. The focus is on 1.3460 next, Jul 30 high. On the downside, 1.3284, Sep 22 low marks initial support.

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