USDCAD breaks the support zone and fell to new lows, it retraced back to support line but line reacted as resistance this time and rejected the price which is a confirmation that USDCAD will fall to further lows 1.3450 area. USD fell to lows ahead of the weekend, near CAD1.3715, its lowest level since March. It reversed higher and closed well above the previous session high 1.3790 creating a potential key reversal.
The momentum indicators have not turned, but they are stretched or nearly so. A move above 1.3840 would be constructive, while additional resistance may be seen around 1.3880. The price action here seems to make it a better candidate than the Australian dollar to fade what appears to have been a breakout.
The momentum indicators have not turned, but they are stretched or nearly so. A move above 1.3840 would be constructive, while additional resistance may be seen around 1.3880. The price action here seems to make it a better candidate than the Australian dollar to fade what appears to have been a breakout.