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Watching The 50-Day EMA

USDCAD TECHS
  • RES 4: 1.2881 High Jan 28
  • RES 3: 1.2807/46 High Jul 19 / 1.236 proj of Jun 1 - 21- 23 swing
  • RES 2: 1.2730 High Jul 20
  • RES 1: 1.2607 High Jul 23
  • PRICE: 1.2462 @ 15:54 BST Jul 30
  • SUP 1: 1.2421 50-day EMA
  • SUP 2: 1.2407 50.0% retracement of the Jun 1 - Jul 19 rally
  • SUP 3: 1.2313 61.8% retracement of the Jun 1 - Jul 19 rally
  • SUP 4: 1.2253 Low Jun 23

USDCAD circled the recent lows Friday. The pair has breached immediate support at 1.2525, Jul 28 low and 1.2502, Jul 14 low. The break suggests scope for a deeper corrective pullback and attention is the 50-day EMA that intersects at 1.2421. A clear breach of the average is needed to strengthen the current downward cycle. On the upside, initial resistance is at 1.2607, Jul 23 high. A break of this level would signal the resumption of bullish activity.

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

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