USDCAD – Near term focus is on testing the 0.9870/0.9760 support
A larger corrective trend started from 0.9405 (July’11 low) appears to be still in force which may be flat corrective wave. A retest of the 1.0510/1.0655 resistance on multi-month basis is possible. The medium term setback from 1.0450 (June high) has the potential to retest the major swing low at 0.9405. A reversal above 1.0250 would refocus on 1.0450 ahead of 1.0510. A break below 0.9405 however targets 0.9300/0.9060 next.
Near term pullback is underway from 1.0060 with minor bearish divergences in daily RSI. Focus is now on testing the 0.9870/0.9760 support where bulls may attempt to fight back. A break below 0.9730 however refocuses on 0.9630 initially. A reversal above 1.0020/1.0060 would extend the recovery toward the 1.0100/1.0250 resistance
which is likely to prove tough.
