USDCAD TECHS: Bounce Mode

• RES 4: 1.4000 Psychological round number
• RES 3: 1.3970 3.236 proj of the Aug 25 - Sep 7 - 13 price swing
• RES 2: 1.3896 3.00 proj of the Aug 25 - Sep 7 - 13 price swing
• RES 1: 1.3838 High Sep 30 and the bull trigger
• PRICE: 1.3720 @ 09:46 BST Oct 7
• SUP 1: 1.3449 20-day EMA
• SUP 2: 1.3358 Low Sep 21
• SUP 3: 1.3224 50-day EMA
• SUP 4: 1.3139 Low Sep 14

Having traded lower Tuesday, USD/CAD bounced into the Wednesday close, with gains extending through to Thursday. Key resistance and the bull trigger, has been defined at 1.3838, the Sep 30 high. Nonetheless, the recent pullback highlights a short-term reversal and potential for a deeper retracement. This is seen as a long overdue correction and is allowing an overbought reading in the trend to unwind. Attention is on the next firm support at 1.3449, the 20-day EMA. A break would strengthen bearish conditions.