Forex Technical Update
With the risk-on trading that is taking place this week, the USD/CAD failed to extend last week's rally. Isntead it follows through with a downside break below a rising trendline see in the 4H chart. The slide is sharp, and is now breaking below the 200 period simple moving average in the 4Hchart. The RSI reading is dipping below 30, and showing bearish momentum, and the retracement is nearing 61.8% which is just above 1.0130.
The Daily chart shows a strong daily candle developing today. Below 1.0130, a support exists at about 1.0030, 50% retracement of the 0.9406 to 1.0656 swing. There is also a projected rising support near the 50% 1.0030 level. A break below opens up 0.9884, 61.8% retracement, near the 200 day SMA. This should be the maximum bearish outlook at the momentum.