USD/CAD Slide Stalls At Long Term 76.4%

The FX Trader’s view - 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.

• 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.

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