USD/CAD Supported Near Equilibrium
- Day: The USD/CAD was seen declining towards the equilibrium area of the recent channel after failing to break its resistance.
- This goes back to early last week’s update on the USD/CAD. Now, the market has almost reached 61.8% retracement and pivoted at 1 .0330.
- This is near the middle (equilibrium) of the channel so it is expected to show some support.
- 4H: The 4h chart shows the RSI reading dipping below 30, but this simply reflects movement within a wide channel. If the RSI fails to go above 60 on this next rally, the market should continue to return towards 1.0330 area and maybe even attempt to test the channel support near 1.0150.
- Also, if the current rally is held below the 61.8% retracement level at 1.0480, it can also be expected to return towards 1.0330, or even lower as this would reflect the market respecting the double top.
