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FXTechstrategy Team

USDCAD: Focus Turn Lower With Trend Resumption Looming.

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USDCAD: With USDCAD continuing its weakness and testing the 0.9841 level to close lower on Tuesday, the threat is for an eventual break and hold below the 0.9841 level, its Aug’2012 low. If this occurs, the pair will resume its medium term weakness towards the 0.9800 level. A violation of there will allow for a move lower towards the 0.9700 level, its psycho level and possibly towards the 0.9600 level. Conversely, the only way to prevent these bear threat is for it to decisively break and hold above the 0.9945 level. This if seen could propel it further towards the 1.0000/83 levels. A breach will aim at the 1.0105 level and then the 1.0165 level. All in all, the pair remains biased to the downside in the medium term.

 

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USDCAD: As continued downside weakness remains in force, USDCAD looks to recapture its key support located at the 0.9841 level, its Aug’2012 low. A decisive clearance of here will resume its medium term weakness towards the 0.9800 level. A violation of there will allow for a move lower towards the 0.9700 level, its psycho level and possibly towards the 0.9600 level. Its daily RSI is bearish and pointing lower supporting this view. Conversely, the only way to prevent this bear threat is for the pair to decisively break and hold above the 0.9945 level. This if seen could propel it further towards the 1.0000/83 levels. A breach will aim at the 1.0105 level and then the 1.0165 level. All in all, the pair remains biased to the downside in the medium term.

 

usdcad20000.gif

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USDCAD: With USDCAD maintaining its upside tone and holding firmly above the 0.9885 level, further price extension cannot be ruled. This leaves the possibility of a return to the 1.0000/83 levels on the cards. Its weekly RSI is bullish and pointing higher suggesting further upside. On the downside, support comes in at the 0.9885 level where a reversal of roles as support is likely to occur and turn the pair higher. However, if this fails, further declines should build up towards the 0.9692/31 levels. A breach of here will call for more declines towards the 0.9500 level. All in all, USDCAD remains biased to the upside above the 0.9883 level.

 

usdcad20000.gif

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