USDCAD – Test of multi-month triangle support line is on the cards
A larger corrective wave started from 0.9405 (July’11 low) appears to be still in force which allows for a retest of the 1.0525/1.0655 resistance on multi-month basis (Alt- Triangle consolidation with upside potential is capped at 1.0450/1.0510). The short term setback from 1.0450 (June high) has the potential to test the 0.9950/0.9940 support (watch the potential triangle support line). A break below retests the strong 0.9900/0.9800 where medium term bulls would fight back.
The pair has renewed the downtrend from 1.0230. Downside focus is now on 1.000/0.9940. The 1.0055/1.0105 resistance is likely to cap strength now (look to sell there). A break below 0.9940 would expose the strong 0.9900/0.9800 support. The 1.0165/1.0230 resistance (watch the daily trendline resistance) is critical for bears.