Tanalys

USD/CAD Reverses Tuesday’s Rally; Below 1.0400 is Near Term Bearish

Daily

Chart Prepared by Jamie Saettele, CMT using Marketscope 2.0

Automate trades with Mirror Trader

USDCAD formed an outside week 2 weeks ago. In fact, that week’s price range engulfs the prior 3 week’s price range and takes out the prior 6 week’s highs. The market has responded well to long term trendline support.

-The current rally reversed from channel resistance (upward slope) and the key reversal close from 8/23 (1.0495).

-Price held former resistance at 1.0420 as support but weakness below 1.0400 would suggest a vulnerable market and shift focus towards 1.0365 and perhaps channel support.

Trading Strategy: Flat

LEVELS: 1.0330 1.0365 1.0397 | 1.0477 1.0496 1.0547

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