USD/CAD could stall the current decline near 1.2246/04 zone - Commerzbank

Axel Rudolph, Senior Analyst at Commerbank offers a technical update for the USD/CAD pair ahead of the Canadian monthly GDP growth figures and the key FOMC decision.

Key quotes:

“USD/CAD’s recent slide has so far taken it to its current January low at 1.2273, close to the 78.6% Fibonacci retracement at 1.2246. Together with the September 20 low at 1.2204 it is expected to hold as support before another medium term up leg is made.”

“Further down sits key support at the 1.2064 September trough. If also slipped through, we would have to allow for the April 2015 low at 1.1922 to be revisited.”

“Immediate downside pressure should persist while no rise above the two month downtrend line at 1.2386 is seen. Further, more significant, resistance can be spotted between the 1.2438 October low and the 1.2588 January high.”

“Above it lies the 1.2626/67 resistance area which is made up of the late August high and the November and December 5 lows.”