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USDCAD TECHS: Corrective Cycle

USDCAD TECHS
  • RES 4: 1.4048 High May 22 2020 
  • RES 3: 1.3977 High Oct 13, 2022
  • RES 2: 1.3856/3946 High Aug 6 / 5 and bull trigger  
  • RES 1: 1.3755 20-day EMA
  • PRICE: 1.3708 @ 16:14 BST Aug 16
  • SUP 1: 1.3689/57 Low Aug 14 / Low Jul 17 
  • SUP 2: 1.3589 Low Jun 11 and a key support
  • SUP 3: 1.3547 Low Apr 9
  • SUP 4: 1.3478 Low Apr 4

The trend condition in USDCAD remains bullish and the latest pullback still appears to be a correction. However, note that price has breached an important support at 1.3730, the 50-day EMA. An extension lower would undermine the bull theme and highlight scope for a deeper retracement towards 1.3657, the Jul 17 low. On the upside, a confirmed reversal higher would refocus attention on 1.3946, the Aug 5 high and key resistance.

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