- USD / CAD fails to hold rebounds at 1.3132, lowest since Jan 24.
- Several setbacks between 1.3135 and 1.3132 challenge bear.
- Bulls should look for inputs above 100 SMA bar.
USD / CAD drops to 1.3141 during the pre-Tokyo opening session on Thursday. The loonie cooled the previous day’s multi-week low before recovering from 1.3132. However, the following weakness again highlights the 1.3135-30 area as key support comprising all three funds.
While a clear break of 1.3130 signals the pair’s fall to 1.3015, given the difference between the extreme low and high marked in the pattern, the January 09 high near 1.3100 could offer an intermediate stop during the fall.
Additionally, the pair’s long south run past 1.3015 will need to challenge the psychological magnet of 1.3000 before aiming for 2019 bottom around 1.2950.
On the flip side, 1.3160 and 1.3200 may entertain short-term buyers, if any, before challenging sentiment with a 100 bar SMA level near 1.3245.
It should be noted, however, that the odds’ ability to break through 1.3245 will propel it up to the 07 Aug high at 1.3398.
Four hour chart USD / CAD
Trend: expected decline