USDCAD: Channel Break Points to Weakness
USDCAD broke through support at the bottom of a falling channel set from the June 1 high, pointing to bearish acceleration. Initial support lines up at 0.9907, the October 27 2011 closing low, with a break below that exposing the March 1 bottom at 0.9854. Channel bottom support-turned-resistance is now at 0.9956, with a push back above that targeting the parity threshold. Current positioning doesn’t offer an actionable trade setup and we will remain on the sidelines for now.
Daily Chart - Created Using FXCM Marketscope 2.0
Written by Ilya Spivak, Currency Strategist for Dailyfx.com
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