USD/CAD: technical outlook

USD/CAD was rejected last week from the levels above 1.0500. Still the pair is trading within bullish channel and has significant support in the 1.0410/1.0390 area and further support lies at 1.0385 (100-day MA), 1.0375 (upper edge of the daily Ichimoku Cloud) and 1.0350 (bottom of the channel). Resistance is at 1.0465, 1.0485 (Nov.15 high) and 1.0526 (Nov.14 high).

The Bank of Canada is dovish and commodities prices are weak preventing loonie from further gains. Neither EUR/CAD nor GBP/CAD has broken below the uptrend lines yet. The market players are waiting for tonight’s speech by Ben Bernanke (00:00 GMT).

Keep an eye on the daily RSI. A rebound from the support line will be a positive signal. A break below this line will point to a deeper correction. On the price chart the medium-term prospects will remain bullish as long as the pair’s trading above the 200-day MA not far from 1.0300.

Chart. Daily USD/CAD   

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