USDCAD defensive range tone, but risk of a bear swing
· We have retained a negative outlook into this week and stated in our last report that “for Tuesday, we again see a cap at 1.1296/98, likely 1.1265/70 and a negative bias for chart supports at 1.1185/84 and maybe to 1.1159”.
· The break below 1.1185/84 leaves risk through 1.1159 through midweek within the late October range theme between 1.1298 and 1.1125, neckline support.
· The growing threat for late October is to test the neckline and for a more bearish shift.
WHAT CHANGES THIS?
· Downside: Below 1.1125 sees risk lower for 1.1080/70 and 1.1053.
· Upside: Above 1.1298 aims higher for 1.1362/86 and 1.1435.
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2 Hour USDCAD Chart