USDCAD - Key support coming, has the retracement over yet?

USDCAD is following the weaker dollar index and having a retracement, it has now dropped to support the key upward trend line. This may provide a rebound opportunity. RSI indicator is located in the oversold zone, showing the recent decline in the exchange rate may be overdone. However, if the uptrend line broke (1.2670), it is worth to keep an eye on 1.2600 level since it is


i. Fibonacci retracement point 38.2%
ii. Integer level
iii. Pivot resistance on 6 Oct and 20 Oct

It is believed that such level will provide a more solid support. With the triple support level, there is limited room for this pair to go down.

It is recommended to temporarily wait for more entry signals. Pay attention to the Oil movement because of Middle East. If the trendline support is broken (1.2670), then the exchange rate will undoubtedly continue to decline to the triple support area, then it may rebound stability; and if the current position to provide rebound forces, then the exchange rate will measure resistance near 1.2720.

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