[LFX]

The most recent sell-off in USD/CAD stalled against support at 1.0419 as the daily studies moved to oversold levels. With the studies subsequently generating a buy signal as well, topside risk has increased for USD/CAD. Note that a daily close above key resistance at 1.0685 (an 8-month trendline) would generate a bullish trend reversal in this regard, highlighting secondary resistance levels at 1.0867 and 1.0991. Hence, this outcome would argue for a year-end rally in USD/CAD before another leg lower in prices takes place. With support located at 1.0512 and 1.0419, prices will have to trade below 1.0419 in order to generate new downside price momentum for USD/CAD.