In analysis of the October 8 I wrote: “if the falls will be continued first target may be found at support 1.2950. After break below it, price may reach the next support at 1.2800”. So it happened and currently movement takes place in a downward channel, coming closer to 1.2800.
October is the month of deep correction in the USDCAD. After the new high in September 29, investors expect further upward movement. That has not happened and instead upward movement currently price falls below the 3 months low. If appropriate support will stop falls, resistance for upward movement will be the upper limit of the downward channel around levels 1.2950 – 1.2970. And the next resistances are 1.3010, 1.3120.
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Wider view, interval D1
After an unsuccessful break above top of consolidation that lasted into August and September 2015, USDCAD broke below from the bottom of consolidation. Currently price will test level 1.2800. As you can see on the daily chart is extremely important level. Level 1.2800 from January to mid-July, stopped upward move. At this time it will work in favour of the bulls generating rebound.
