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Testing Its 50-Day EMA

USDCAD TECHS
  • RES 4: 1.2976 1.00 proj of the Jun 23 - Jul 19 - 30 price swing
  • RES 3: 1.2957 High Dec 21, 2020
  • RES 2: 1.2949 High Aug 20 and the bull trigger
  • RES 1: 1.2796/2896 High Sep 23 / High Sep 20
  • PRICE: 1.2692 @ 18:49 BST Sep 28
  • SUP 1: 1.2583 Low Sep 10
  • SUP 2: 1.2494 Low Sep 3 and the bear trigger
  • SUP 3: 1.2422 Jul 30 low and a key support
  • SUP 4: 1.2367 61.8% retracement of the Jun - Aug rally

USDCAD traded lower last week and continues to move further away from its recent Sep 20 high of 1.2896. A bullish price structure remains intact though and the pullback is considered corrective. The pair is testing the 50-day EMA, a clear breach of this average would signal scope for a deeper pullback and open 1.2494, the Sep 3 low. For bulls, a reversal higher and a resumption of gains would again open key resistance at 1.2949, Aug 20 high.

MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com

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