The USDCAD pair is in consolidation mode after repeated unsuccessful probes below 1.2500 support. Tuesday’s close in tight Doji signaled hesitation at 1.2500 hurdle (that I anticipated in my previous report), following dips to 1.2483/80 lows on Mon/Tue, but close above 1.2500 on both days. Reaction was so far mild as daily technical studies remain firmly bearish and lacking firmer positive signals, despite strongly oversold conditions. Limited upside attempts stay so far under Tuesday’s high at 1.2532, short of the initial pivot at 1.2545 (hourly cloud top) and more significant barriers at 1.2595 (falling 10SMA) and 1.2613 (daily Tenkan-sen) regain of which is needed to generate stronger reversal signal. Overall bearish structure suggests limited correction ahead of final push towards target at 1.2459 (03 May 2016 low). The pair may stay within narrow consolidation, awaiting FOMC statement for firmer signals.
Res: 1.2532; 1.2545; 1.2595; 1.2613
Sup: 1.2500; 1.2480; 1.2459; 1.2400