USDCAD: Testing the most important Support

The USDCAD pair reached the Higher Lows trend line for the first time since August 11th, which has been supporting the bullish trend for the past 6 months. The 1D technical outlook decpits the medium-term bearish correction (RSI = 39.227, MACD = -0.004, ADX = 28.712) but it can't continue unless the HL break.

Since it has been the strongest Support of the past 6 months, there are higher probabilities to see a rebound, at least back to the 1D MA50, if not the Lower Highs trend line. Then R1 (1.36900) comes into play.

A break under the HL is not enough on its own for a short as the S1 (1.32250) level and the 1D MA200 are ready to support. We require a break under both to justify a longer term short, which will be aimed at S2 (1.29650).



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