Short term caution is required here following the aggressive moves of late. The momentum has turned up and the pair has posted a hammer pattern just above the support level at 1.0820. The last two times the daily momentum indicator turned up, USDCAD corrected up for at least three sessions. Beyond that we continue to believe the dominant trend is down and that the pair will eventually test the double top target of parity.
Short-Term Outlook: Resistance Located Between 1.0932 and 1.0983
Short-term gains to resistance at 1.0932 and 1.0983 are expected to attract selling interest for a return to support at 1.0796. Secondary support is located at 1.0628.
Medium-Term Outlook: Downtrend Pivot Point Located at 1.1373
The downtrend that is in place indicates that resistance at 1.0932 and 1.1099 should attract selling interest for a move to 1.0818. A daily close below this level would then highlight 1.0709. We stress that the current downtrend will remain valid while USD/CAD trades below 1.1373 on a daily closing basis, with 1.0600 serving as medium-term technical price target.
USDCAD - Short Term Caution
Linear Mode
