Forex Technical Update
USD/CAD 1H Chart
The USD/CAD failed to be contained in a projected channel seen in the 1H chart. Instead, we had a rally to 1.0262, where the market found resistance. As the 11/15 US session winds down, the pair is at 61.8% retracement of the rally that started from the consolidation low at 1.0150. The 1.0195 level is also 38.2% retracement of the 1.0087 to 1.0262 swing. Note also that the market came down in an ABC pattern, and can be considered a completion of a Gartley. This 1.0190-1.0195 areis also the high from the previous consolidation zone for Nov. 14. If this confluence of support factors do not give the USD/CAD a bounce toward bullish continuation, the 50% retracement level at 1.0175 is the next support. Below the 1.0150 level, which is near 61.8% retracement, the market is no longer bullish, but range-bound.
The daily chart shows that above the current resistance at 1.0270, which is also 50% retracement of the 1.0656 - 0.9888 swing, the market opens up 1.0363, 61.8% retracement. Seeing that the market is trading above the 200SMA, and that the RSI was supported above 40, there is a bullish bias, so the 1.0490, 78.6% retracement and 1.0656 high are also possible bullish targets. These latter targets are suggested if there is a throwback that respects the current resistance at 1.0270 level as support.