USDCAD TECHS: Bullish Trend Structure
- RES 4: 1.4304 2.0% 10-dma envelope
- RES 3: 1.4246 2.00 proj of the Oct 17 - Nov 1 - 6 price swing
- RES 2: 1.4196 1.764 proj of the Oct 17 - Nov 1 - 6 price swing
- RES 1: 1.4090/4178 High Dec 02 / High Nov 26 and the bull trigger
- PRICE: 1.4062 @ 08:05 GMT Dec 5
- SUP 1: 1.3993/28 20-day EMA / Low Nov 25 and a key support
- SUP 2: 1.3887 50-day EMA
- SUP 3: 1.3822 Low Nov 6
- SUP 4: 1.3747 Low Oct 17
The trend condition in USDCAD remains bullish and the Nov 25 fresh cycle high reinforces this theme. Gains confirm a resumption of the primary uptrend and mark an extension of the bullish price sequence of higher highs and higher lows. Sights are on 1.4196 next, a Fibonacci projection. Key short-term support has been defined at 1.3928, the Nov 25 low. For now, short-term weakness is considered corrective.
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SILVER TECHS: Corrective Bear Cycle Remains In Play
- RES 4: $36.050 - 2.236 proj of the Aug 8 - 26 - Sep 6 price swing
- RES 3: $35.226 - 61.8% of the 2011 - 2020 major bear leg
- RES 2: $35.167 - 2.00 proj of the Aug 8 - 26 - Sep 6 price swing
- RES 1: $34.903 - High Oct 23 and the bull trigger
- PRICE: $32.481 @ 08:01 GMT Nov 5
- SUP 1: $32.251 - Intraday low
- SUP 2: $31.616 - 50-day EMA
- SUP 3: $30.152 - Trendline support drawn from the Aug 8 low
- SUP 4: $27.686 - Low Sep 6
Bullish conditions in Silver remain intact and the bear cycle that started on Oct 23 is considered corrective - for now. The metal has breached the 20-day EMA. A continuation lower would highlight scope for a deeper retracement and open £31.616, the 50-day EMA. For bulls, a reversal higher would refocus attention on $34.903, the Oct 23 high. Clearance of this level would confirm a resumption of the uptrend.
EQUITIES: Either Side Of Unchanged, Background Support From China
European & UK equities mixed ahead of the cash open, but not straying too far from unchanged levels.
- Tailwinds from a data-driven move higher in Chinese equities provides background support, particularly for mainland European indices.
- Futures change from settlement:
- Euro Stoxx 50: +0.14%
- DAX: +0.13%
- CAC 40: -0.02%
- FTSE MIB +0.15%
- SMI: +0.21%
- FTSE 100: -0.12%
- Technically, Euro Stoxx 50 futures are trading closer to their recent lows. Last week’s move down resulted in a breach of support at 4,914.00, the Oct 16 low. 4,884.06, the 38.2% retracement of the Aug 5-Sep 30 bull cycle, has also been broken.
- This exposes 4,815.50 next, the 50.0% retracement point.
- To the upside, initial firm resistance has been defined at 5,015.00, the Oct 29 high. First resistance is at 4,936.69, the 20-day EMA.
USDCAD TECHS: Pierces Key Resistance
- RES 4: 1.4167 2.0% 10-dma envelope
- RES 3: 1.4000 Round number resistance
- RES 2: 1.3977 High Oct 13 and a key M/T resistance
- RES 1: 1.3959 High Nov 1
- PRICE: 1.3889 @ 07:55 GMT Nov 5
- SUP 1: 1.3875/3822 Low Nov 04 / 20-day EMA
- SUP 2: 1.3727 50-day EMA
- SUP 3: 1.3611 Low Oct 8
- SUP 4: 1.3567 Low Oct 7
The USDCAD trend outlook is bullish and the pair is holding on to the bulk of its recent gains. Last week’s gains resulted in a print above 1.3946, the Aug 5 high and the next key hurdle for bulls. A clear break of this hurdle would strengthen the uptrend and open 1.3977, the Oct 13 high and a key medium-term resistance point. Initial firm support to watch lies at 1.3822, the 20-day EMA. The latest pullback is considered corrective.
