Blake Morrow’s Chart of The Day – July 23rd 2021
The USDCAD rally got a little ahead of itself over the last few sessions once we broke above the 200dma. The bounce back in equities (now almost all time highs again!) and the crude oil market recovery (from $66 to $71.60) provided the support needed for a bounce in the CAD and a pullback in the USDCAD pair. The USDCAD was swiftly sold from 1.2807 to 1.25’s but has managed to find support today. Channel support is just above the 1.2500 level, the 50% retracement of the June 23nd lows to this week’s highs are at 1.2532 and horizontal support (highs from June 21st) is near the 61.8% Fibonacci retracement at 1.2466. We’d expect the 30pips above/below the 1.2500 level to offer strong support into next week.