FOREX INVESTORS USDCAD Dropped Midday Chatter The USDCAD decreased 0.0012 or 0.09% to 1.2944 on Thursday July 6 from 1.2955 in the previous trading session. Historically, the Canadian Dollar reached an all time high of 1.61 in January of 2002 and a record low of 0.92 in November of 2007.
A temporary top is in place at 1.2911 after touching 1.3013 minor resistance. Intraday bias in USD/CAD is turned neutral first. Considering bullish convergence condition in 4 hour MACD, break of 1.3013 will indicate short term bottoming. In such case, stronger rebound would be seen back to 1.3164/3346 resistance zone first, before staging another fall. Overall, we’d expect decline from 1.3793 to extend later and sustained trading below 1.2968 cluster support, 61.8% retracement of 1.2460 to 1.3793 at 1.2969 will pave the way to retesting 1.2460 low.
In the bigger picture, price actions from 1.4689 medium term top are seen as a correction pattern. The second leg should have finished at 1.3793. Break of 1.2460 will extend such correction to 50% retracement of 0.9406 to 1.4869 at 1.2048. At this point, we’d look for strong support from there to contain downside and bring rebound. However, firm break there will target 100% projection of 1.4689 to 1.2460 from 1.3793 at 1.1564.
|1.29||1.30||1.61||0.92||1972 – 2017||Daily|
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