A minor dip lower Tuesday, but a rebound from ahead of minor support at 1.1700/1.1690, which we had looked to try to hold.
Moreover, support held through the Holiday season at 1.1565/60 for a platform to surge above the 61.8% retrace of the entire 2009-11 sell off at 1.1655, a key weekly failure peak from 2009 at 1.1727 and a minor weekly target from 2010 at 1.1817.
This all leaves risk for another bullish extension for early January.
Short-term Outlook - Upside Risks
- Above the recent high at 1.1844 targets a notable impulse low at 1.1981 and the psychological/ option target at 1.2000.
- Overshoot risk for January is to the 78.6% retrace of the entire 2009-11 sell off at 1.2280!
Momentum: The 8-day RSI, short-term momentum is OB, but we still see scope to go higher this week. Momentum is confirming the new high.
What Changes This? Below 1.1600 eases bull risks; through 1.1560 signals a neutral tone, quickly shifting negative below 1.1394.
- We see an upside bias for 1.1844; break here aims for 1.1885.
- But below 1.1753 opens risk down through 1.1730 to 1.1700/1.1690, which we look to try to hold.
4 Hour USDCAD
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