Best Financial Markets Analysis Article An initial recovery off long term 76.4% support in USD/CAD has been followed by a deep setback, which has just found support from a shorter term 76.4% level. Bulls waiting in the wings now need this to continue, breaching certain resistance points.

The FX Specialist view

WEEKLY CHART:

Earlier this year good support emerged from the long term 1.0000 76.4% retracement, which coincided with the centre of congestion from 2008.

First resistance comes from around the 23.6% bounce level – so far the market has failed to sustain above this.

DAILY CHART:

The earlier recovery failed to hold above the 23.6% level, postponing a bull trigger and subsequent move towards the higher 1.1125 38.2% area.

The subsequent slip back has now tested the 76.4% level, prompting a smart rebound. However, sidelined bulls need to see continuation higher, with better close above that 23.6% level and break of the 25-May 1.0851 high.

A drop back through 76.4% and the 1.0105 13-May low would not be a good sign now.

Mark Sturdy
John Lewis

Seven Days Ahead
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Mark Sturdy, John Lewis & Philip Allwright, write exclusively for Seven Days Ahead a regulated financial advisor selling professional-level technical and macro analysis and high-performing trade recommendations with detailed risk control for banks, hedge funds, and expert private investors around the world. Check out our subscriptions.

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