USDCAD hit a fresh 11-year high of 1.3456 on September 29. Prices have since eased back down to test the kijun-sen line which is acting as key support at 1.3235. Thursday’s low of 1.3217 is now in focus. Below this level the bias would turn neutral but the Ichimoku cloud will likely provide support. A break into the cloud would weaken the bullish outlook.
A move to the upside would target the 11-year high of 1.3456 and above this 1.3470 comes into focus. This is the 61.8% Fibonacci retracement level of the 2002 to 2007 fall from 1.6196-0.9057.
In the bigger picture, the bullish trend that started at 1.1919 looks to remain in place as there are no clear signals of a shift in the bias. The rising Ichimoku cloud and rising 200-day moving average highlight the bullish bias.
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