USD/CAD: a fall below 1.2357 would target the 1.2246/04 zone - Commerzbank

Axel Rudolph, Senior Analyst at Commerzbank, expects the USD/CAD pair to remain under pressure and looks for a break below 1.2357 for bearish confirmation. 

Key quotes:

“USD/CAD’s recent slide has so far taken it to its current January low at 1.2357, to below the July low at 1.2416, before rising back above this level.”

“It thus nearly reached the 55 month moving average at 1.2314. Below it the 78.6% Fibonacci retracement of the September-to-December advance at 1.2246, together with the September 20 low at 1.2204, could also be reached.”

“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 1.2552 current January high is made.”

“Above it lies the 1.2588/1.2667 resistance area which is made up of the early and mid-October highs and the November and December 5 lows.”