Best Financial Markets Analysis Article USD/CAD bears have continued to dominate, with recovery attempts soon petering out. A long term 76.4% pullback level has now been reached, with the market pausing here, and we currently await better reaction.

The FX Trader’s view

WEEKLY CHART:

The chart has finally tested the 76.4% level at 1.0000, also the centre of congestion from 2008.

S/term support has been seen here, but we await a better reaction.

DAILY CHART:

On the Daily chart we keep in mind still the positive RSI divergence here, hinting at s/term bear fatigue.

However, first resistance around the 1.0215 19-Apr high, corresponding with prior lows, needs to be overcome in order to shake off s/term risk of a break lower.

Then, beyond the 1.0368 22-Feb low, the bear channel top projection around 1.0525 represents the next hurdle that must be negotiated, to raise medium term recovery expectations.

Meanwhile bear risk remains present.

Mark Sturdy
John Lewis

Seven Days Ahead
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