USD/CAD under selling pressure
USD/CAD tried to rebound on Tuesday, but was capped by the 1.0250 resistance. On Wednesday the pair extended the downside and broke below the 1.0200 support. As of writing, USD/CAD is testing the levels below 61.8% Fibonacci (1.0170). The pair is trying to decline below the bottom of the daily Ichimoku.
We expect the downside to extend to 1.0110 (78.6% Fibo) in the near-term. Watch the support at 1.0130 (200-day SMA). A break below 1.0110 would pave the ground to 1.0070 (2012-2013 trend line) and to parity. In order to reverse to the upside bulls need to push through the 1.0200/15 (50% Fibo, 200-period MA on the H4). We will be ready to buy on a break above $1.0250 (yesterday’s high), but the current picture is clearly bearish.
Chart. H4 USD/CAD