USDCAD bounces were restrained at resistance at 1.2989 levels.
From last four days, the pair bounced from the lows of 1.2743 levels to 1.2989, that’s where it tested resistance at that level and unable to hold onto and collapsed as a result of more pressures.
We uphold CAD’s strength as it still holding 8 and half months lows even though the existing rallies were considered.
(14) could be deceptive if you interpret the current upward convergence as a reversal as there is absolutely no confirmation from lagging indicators.
But instead, on the contrary the indicator evidences downward convergence to the price dips on monthly charts to signal more strength in rallies.
Same is the interpretation for another leading indicator (slow ), so, we believe selling momentum may resume at any given time.
The current prices have remained well below 21DMA with crossover.
On monthly plotting, we think the occurrence at peaks have still more potential.
Last month it has broken below an important support at 1.3070 levels and channle support as well that signals more weakness and retest of next support at 1.2745 (38.2% Fibo retracement from peaks of ) is likely event for now.
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