OPTIONS: Larger FX Option Pipeline

• RES 4: 1.4016 3.382 proj of the Aug 25 - Sep 7 - 13 price swing
• RES 3: 1.4000 Psychological round number
• RES 2: 1.3855/3977 High Oct 21 / 13 and the bull trigger
• RES 1: 1.3808 High Nov 03
• PRICE: 1.3522 @ 15:52 GMT Nov 4
• SUP 1: 1.3499/96 50-day EMA / Low Oct 27
• SUP 2: 1.3409 Low Sep 22
• SUP 3: 1.3358 Low Sep 21
• SUP 4: 1.3227 Low Sep 20

USDCAD traded sharply lower Friday. Support is seen at 1.3499, the 50-day EMA and 1.3496, the Oct 27 low. These two chart points have been breached on an intraday basis, but highlight a key support zone on the daily chart. A firm break would highlight a short-term bearish threat and likely trigger an extension of the bear cycle that started Oct 13. This would open 1.3409, the Sep 22 low. On the upside, initial firm resistance has been defined at 1.3808, Thursday’s high.

• RES 4: 0.6682 Low Jul 14 and a recent breakout level
• RES 3: 0.6656 High Sep 23
• RES 2: 0.6600 Round number resistance
• RES 1: 0.6522 High Oct 27 / 4 and a key resistance zone
• PRICE: 0.6438 @ 15:51 GMT Nov 4
• SUP 1: 0.6272 Low Nov 3
• SUP 2: 0.6210/6170 Low Oct 21 / 13 and the bear trigger
• SUP 3: 0.6133 1.382 proj of the Apr 5 - May 12 - Jun 3 price swing
• SUP 4: 0.6099 76.4% retracement of the 2020 - 2021 bull cycle

AUDUSD has found support as the USD weakens across the board. Today’s rally suggests the recent pullback between Oct 27 - Nov 3 is over and a strong NY close today would reinforce this idea. Key short-term resistance is at 0.6522, Oct 27 high and 0.6547, Oct 4 high. A breach of this resistance zone would strengthen the case for bulls. On the downside, a reversal lower and a breach of yesterday’s 0.6272 low, would reinstate a bearish threat.