Wednesday’s failure to maintain more than half of the day’s initial downside proved temporary. Modestly higher early price action Thursday was overturned in the latter part of the day and, despite continued oversold extremes, a 4th down day in a row resulted. USDCAD traded to the lowest levels for 3 weeks – approaching the 100 day mvg avg. The proximity of that point is a concern but we continue to look for rallies to be temporary and limited.
Rallies near 1.3011 should attract sellers with downside potential to 1.2956, 1.2928 or even 1.2889. Only above 1.3048 is assessed as positive.