USDCAD attempts to recover – Technical Analysis – 16-10-2015

The USDCAD pair decline recently, pushed by the moving average 50, besides settling below 1.2948 resistance level after breaking it previously, this level represents 38.2% Fibonacci level of the bullish wave measured from 1.2635 to 1.3456, which added more negative pressure on the pair, and despite the positive divergence is formed on stochastic appears on chart, but we notice a quick release to the oversold signals, which hints the continuation of the short term bearish trend.

Therefore, we expect the pair to decline in the coming trading, with big chances of rising to recover some of the recent losses, targeting 1.2948 resistance accompanied by touching the moving average, to resume the decline that targets 1.2790 level, this level represents 50% Fibonacci for the above mentioned bullish wave.