Morning Market Update – USD/CAD

USD/CAD is staying in consolidation from 1.2432 and intraday bias remains neutral first. A deeper retreat cannot be ruled out. But we’d expect the downside to be contained by 1.2432 levels as the price action has bounced off these levels. Above the support level the pair will turn biased to the upside for retesting 1.2637 high next.

Looking at the bigger picture, the price actions from 1.2432 medium term support are seen as a correction pattern. The first leg shall be tested at 1.25755. The second leg started from breaking about the levels and is likely still in progress and could target 1.2637. We’d look for a reversal signal there to start the third leg. A break of 1.2575 would at least bring a retest of 1.2637. However, sustained trading above 1.25432 would pave the way to retest the high.

The USDCAD pair provided a calm positive trend to approach from 1.2432 barrier. While the stochastic continues the attempts of gaining the positive momentum on the daily time frame, the pair is waiting to continue the rise on the intraday and short term basis.

In general, we keep preferring the bullish trend in the upcoming sessions, but the focus shall be on the break above the EMA50, targeting 1.2575 level as a next main station. Breaching it represents the key rally towards 1.2637 directly, pointing that holding above support levels represents an important condition for the continuation of the expected rise.

Expected trading range for today is between 1.2432 support and 1.2634 resistance.

Expected trend for today: Bullish
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