USD/CAD – A look at the short term chart suggests a strong short term reaction off of support at 1.1680 this morning; Still bearish on USD/CAD but want to keep a close tab on short term trends here as the hourly chart shows a clear “falling wedge” like pattern, which does suggest that the near term trend lower may be running out of gas. Above 1.1800/10 would pave the way for a deeper retracement of the market’s recent losses – potentially back to the 1.19 area. Intraday, expect firm resistance at 1.1771 and suspect that this morning’s short covering bounce may stall there or thereabouts.
EUR/CAD – The heavy tone remains for EUR/CAD, with the market still pressuring support in the 1.5650/1.5750 zone. Two tests of 1.5650/60 in the past couple of days leaves near term key resistance at 1.5780 (minor double bottom trigger for 1.5880/00) though expect near term gains to remain relatively minor (possibly limited to the mid/upper 1.57s) and attract renewed selling interest. Short term bear trend momentum is strong and strengthening further at the moment; typically, that means only limited scope for retracements.
CAD Technical
Linear Mode
