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TECHS: Pullback Counters Bullish Outlook

DOLLAR-CANADA
  • RES 4: 1.3421 High Sep 30 and primary resistance
  • RES 3: 1.3341 High Oct 7 and a reversal trigger
  • RES 2: 1.3260/68 50-day EMA / High Oct 7
  • RES 1: 1.3259 High Oct 15
  • PRICE: 1.3120 @ 17:12 BST Oct 20
  • SUP 1: 1.3113 Low Oct 20
  • SUP 2: 1.3099 Low Oct 13 and the bear trigger
  • SUP 3: 1.3095 76.4% retracement of the Sep 1 - 30 rally
  • SUP 4: 1.3038 Low Sep 2

Despite the short-term bullish outlook, USDCAD dropped further Tuesday, taking out initial support at 1.3143, which undermines the recent recovery. The bear trigger at 1.3099 rests as next support which, if broken, would open a more protracted move lower. To the upside, a clear breach of the 50 EMA at 1.3260 would strengthen a bullish case.

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