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Watching Resistance

USDCAD TECHS
  • RES 4: 1.3538 50.0% retracement of the Nov 1 - Dec 27 bear leg
  • RES 3: 1.3481 200-dma
  • RES 2: 1.3466 50-day EMA
  • RES 1: 1.3415/3418 High Jan 09 / 1.0% 10-dma envelope
  • PRICE: 1.3405 @ 16:13 GMT Jan 09
  • SUP 1: 1.3229/3177 Low Jan 2 / Low Dec 27
  • SUP 2: 1.3093 Low Jul 14 and key support
  • SUP 3: 1.3019 2.0% 10-dma envelope
  • SUP 4: 1.2992 50.0% retracement of the 2021 - 2022 bull phase

The broader USDCAD trend outlook remains bearish, despite recent gains which extended Tuesday, but continue to appear to be a correction. A continuation higher would expose resistance at the 50-day EMA, at 1.3466. This average represents an important resistance and a clear break would highlight a stronger reversal. A move lower would signal the end of the correction and attention would turn to 1.3177, the Dec 27 low and bear trigger.

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