The USDCAD begins bullish correction – Analysis - 10-01-2020

The USDCAD pair rallied upwards to breach the bearish channel’s resistance, to start bullish correction for the decline from 1.3320 to 1.2951, noticing that the price found solid resistance at 38.2% Fibonacci correction level at 1.3092, to hint potential return to resume the main bearish trend, but the positive signals coming by stochastic and the EMA50 support the chances of achieving more bullish correction.

Therefore, this contradiction between the technical factors makes us prefer staying aside until we get clearer signal for the next trend, noting that breaching 1.3092 will extend the bullish wave to target 1.3180 areas initially, while breaking 1.3030 will push the price back to the bearish track that its next target located at 1.2900.

The expected trading range for today is between 1.2980 support and 1.3140 resistance.

The expected trend for today: Neutral