USDCAD - Looking to break the cloud base; Bearish below 1.0156

In the medium term report we noted daily cloud support for USDCAD at 1.0123, which held back the bears in yesterday’s trading. However, the profit taking correction was sold and further selling pressure has been posted overnight. Although we need a clear break to focus on the channel support at 1.0065, our bias is mildly bearish. In view of these facts our call is bearish below 1.0156.

The profit targets are 1.0100, then 1.0065, channel base, and towards 1.0051, a 50 percent pullback of gains from .9799-1.0448.

The risk to this call is that selling interest is weaker than currently assessed. This would be signalled by a move through 1.0156, todays Asian high.