With USDCAD rallying to close higher on Wednesday, further upside is likely. Resistance seen towards the 1.1172 level, its big psycho level.
It may face bear threats at this level but if broken, further upside could occur towards the 1.1200 level. Support comes in at the 1.0900 level, its psycho level.
A cut through here will aim at the 1.0842 level, its Jan 13 2014 low. A follow-through lower if seen will open the door for a run at the 1.0736 level, its Dec 20 2013 high.
A reversal of roles as support is likely to occur here and turn the pair higher from this level. However, if this fails to happen expect more weakness towards the 1.0650 level.
Its daily RSI is bearish and pointing lower supporting this view. All in all, USDCAD continues to face further bearishness on correction.
Guest post by FX Tech Strategy
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