FX.co ★ Technical analysis of USD/CAD for December 9, 2016

USD/CAD has established a downtrend producing lower lows and lower highs. The pair broke the lower trend line of the descending channel after which rejected the 50 Moving Average.

Fibonacci applied to corrective wave up where the MA was rejected shows that today USD/CAD broke below the 161.8% Fibs and should continue moving lower to test next target.

Consider selling USD/CAD on small pullbacks up targeting either 261.8% (1.3115) or 361.8% (1.3040) Fibs. Suggested stop loss is 1.3570.

Support: 1.3115, 1.3040

Resistance: 1.3190, 1.3235