Massive technical rejection in USD/CAD

Author: Adam Button | Category: News

There’s a great deal of convergence on the USD/CAD daily chart.

  1. The 100-day moving average held as support for the third time in the two months. The two prior tests resulted in 300-pip rallies over the subsequent week. The 100dma was also a particularly good indicator during the 2010-11 downtrend.
  2. Buyers came in at the uptrend from the previous lows.
  3. The daily candlestick is showing a significant reversal with a close above 1.0233 as confirmation (spot at 1.0241)
  4. The pair is forming a wedge that I expect will resolve to the upside in mid-Jan
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