Forex Technical Update
Since seeing a negative reversal at the start of the week, the USD/CAD has rallied back to test the resistance area of 1.02. However after the BoC left its benchmark rate unchanged at 1.0%, the market respected the 1.02 resistance, and kept the RSI reading in the 1H chart below 60. (Not shown here, but the 4H chart has the 200 period simple moving average at this 1.02 pivot as well.) This shows maintenance of the bearish momentum. The reaction for CAD strength also brought the USD/CAD clearly below a rising support.
The short-term outlook for this breakout is a retest of the Dec 2 low at about 1.0075. A break below this looks at the 1.0030-1.0050 area as this is the projected triangle support seen in the daily chart.