USDCAD bears are far from taking control
USDCAD posted the biggest daily slump in six years on Friday and pushed back the bulls. The bears, however, have a long way to cover before taking control as a 15-month-old rising trend line, around 1.3330 by the press time, defends the upside expectations. Even if the quote breaks the said key support, the 61.8% Fibonacci retracement of August-October upside, near 1.3200, appears the last defense of the buyers before finally welcoming the sellers.
Alternatively, recovery moves need successful trading beyond 1.3500 to convince the USDCAD buyers. Even so, the 23.6% Fibonacci retracement level and the monthly high, respectively around 1.3680 and 1.3810, could challenge the upside momentum. Following that, multiple hurdles near 1.3840-50 will precede the yearly top surrounding 1.3980 to probe the bulls. If the pair rises past 1.3980, the 1.4000 psychological magnet and the 61.8% Fibonacci Expansion (FE) of September-October moves, close to 1.4135, should be in the spotlight.
Overall, USDCAD may witness a bit of corrective due to the 50-DMA break but the downtrend is far from here.
