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USDCAD TECHS: Bear Flag

USDCAD TECHS
  • RES 4: 1.3739 High Aug 15
  • RES 3: 1.3656 50-day EMA 
  • RES 2: 1.3594 20-day EMA  
  • RES 1: 1.3563 High Sep 03
  • PRICE: 1.3516 @ 15:39 BST Sep 03
  • SUP 1: 1.3441 Low Aug 28
  • SUP 2: 1.3420 Low Mar 08
  • SUP 3: 1.3358 76.4% retracement of the Dec 27 - Aug 5 bull leg
  • SUP 4: 1.3288 Low Jan 05

USDCAD is firmer, shaking off the bearish backdrop. The recent impulsive sell-off reinforces the current bearish condition and moving average studies are in a bear-mode set-up. Note too that the most recent shallow retracement appears to be a flag formation - a bearish continuation pattern. Sights are on 1.3358, a Fibonacci retracement. On the upside, initial firm resistance to watch is at 1.3594 the 20-day EMA.    

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