USDCAD has continued to climb this week and the move higher has cemented the recent short-term reversal. Yesterday’s gains resulted in a break of 1.2945, 76.4% of the bear leg between May 12 - Jun 8. The breach reinforces a bullish theme and signals potential for a climb towards key resistance at 1.3077, the May 16 high. Initial firm support is at 1.2741, the 20-day EMA.
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USDCAD remains below last week’s high of 1.3077. A pullback is considered corrective and the outlook is bullish. Recent gains resulted in a breach of 1.2914, May 2 high, and key resistance at 1.2964, the Dec 20 2021 high. The break of the latter marks an important M/T bullish development and reinforces the positive outlook. This has opened 1.3177 next, the upper band of a MA envelope. Initial support is at 1.2914. Key support is at 1.2714, Apr 29 low.
AUDUSD maintains a bearish tone having resumed its downtrend last week. The move lower marked an extension of the reversal last week from 0.7266, the May 4/5 high. Moving average studies are in bear mode condition, highlighting current sentiment. Support at 0.6968, the Jan 28 low and a bear trigger, has been breached. This opens 0.6805 next, the Jun 22 2020 low. Initial firm resistance is at last Wednesday’s high of 0.7054.