Forex Technical Update
The 1H USD/CAD chart shows a bearish market. It is trading below the 200 hour simple moving average, and the RSI has remained mainly below 60 with the ability to push below 30. However, after the 12/2 NFP release, the pair found pivoted off a 1.0075 low and rallied to 1.0195. To start the new week, USD/CAD is now finding resistance here below 1.02, respecting a projected declining resistance. The RSI made a higher high then on Dec 1, but the price high is lower. A swing projection targets near 1.0050. A break of RSI reading below 40 helps strengthen the case for this bearish scenario in the short-term.
The daily chart shows that if this swing projection pans out, the market is near an important support cluster. The 1.0030 level is 50% retracement and near a rising triangle support as well as the 100day SMA. The RSI would also be near 40, above which the bullish momentum is maintained.