The USDCAD has moved lower after failing to break higher earlier today. Technically, the pair pushed short above the High 19/04/2020 at 1.4264reaching a high session of 1.4270but the trend quickly subsided. The price turned back below last week's high 1.4244 (Friday) and extended to a low correction level of 1.4222 before jumping back higher.
The couple is now reaffirming Friday's high at 1.4244– a critical stage where sellers must step in to prevent the upside and try to regain control. The risk to sellers remains limited at this point, but the question is whether they can generate enough momentum to push the pair lower.
If sellers succeed, the next major downside target will come in at the Zone 1.4194 to 1.4200. A break below this area will further strengthen seller confidence and indicate a shift in control.
Adam in his post, painting the political upheaval that could lead to a RISE in the CAD (lower USCADCAD). See his post here…
Adam wrote:
I tend to think that it is all upside down risks for the Canadian dollar here (gain for USD/CAD) because if an election is called, it is a foregone conclusion and the market would like to see some change.
Technically, the best case would be to hold here near the level of 1.4244. A more conservative technical top would need to remain below 1.4264.
