Previous: USD/CAD Attempting to Climb Above Parity after Double Bottom (10/31)

USD/CAD

USD/CAD

The USD/CAD fell sharply in the 12/3 European session heading into the US session. After failure to rally above 1.0220, the market is developing a double top in USD/CAD in the 1H chart. The break below 1.0106 officially completes the double top. Note the RSI reading falling below 40, reflecting the loss of bullish momentum. If the market follows through with the double top, the first near-term target where we might find support is the at 1.0057, 50% retracement and 200-period simple moving average. Below that the 61.8% retracement is coincident with yet another pivot at 1.0018.

Fan Yang CMT is the Chief Technical Strategist FXTimes - provider of Forex News, Analysis, Education, Videos, Charts, and other trading resources.