Axel Rudolph, Senior Analyst at Commerzbank, noted the pair should meet support in the 1.2744/30 band.
Key Quotes
“USD/CAD‘s decline is ongoing and has taken it to its current October low at 1.2783, effectively to around the breached 2016-18 resistance line at 1.2801″.
“Together with the May lows at 1.2744/30 we expect this support area to hold”.
“Should this not be the case we would turn bearish and target the April trough at 1.2529. Further down sits the 1.2463 May 2016 low”.
“Minor resistance above the 1.2872/88 resistance area (August and September 20 lows as well as 200 day moving average) comes in at the 1.2963 early August low”.
“Downside pressure will be maintained while the 55 day moving average and the late September high at 1.3034/80 cap”.
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