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USDCAD TECHS: Gains Considered Corrective

USDCAD TECHS
  • RES 4: 1.3739 High Aug 15
  • RES 3: 1.3652 50-day EMA 
  • RES 2: 1.3590 20-day EMA  
  • RES 1: 1.3563 High Sep 03
  • PRICE: 1.3542 @ 08:03 BST Sep 04
  • SUP 1: 1.3441 Low Aug 28 and the bear trigger 
  • 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 traded higher Tuesday, shaking off the bearish backdrop. However, the latest climb appears to be a correction. The recent impulsive sell-off reinforces a bearish condition and moving average studies are in a bear-mode set-up. A resumption of bearish activity would signal scope for a move towards 1.3358, a Fibonacci retracement. On the upside, initial firm resistance to watch is at 1.3590 the 20-day EMA.

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