The FX Specialist view – Since May last year the USD/CAD chart has been drifting lower, retesting, and initially finding, support from a 76.4% level. This failed earlier this year and the market remains on course for the next downside Fibo projection.
- WEEKLY CHART
The 76.4% support level, already effective earlier in 2010, again held later that year, but has since failed.
Ahead of the major 0.9056 Nov-07 low we have drawn in a Fibo projection at 0.9485, which is the next target now. - DAILY CHART:
The consolidation earlier in 2011 recently gave way to a further bear move. This has now closed in on potential support from the bear channel base projection at 0.9660 currently.
Failure here would open up the lower projection on the Weekly chart.
At this stage a rally/close above the 0.9958 23-Feb high would be a shorter term positive sign.
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