Technical levels broken in the USDCAD after better Canada Manufacturing Sales data

The better Manufacturing Sales data (+2.5% vs +1.1% estimate and a higher revision to last month’s data) has helped to push the USDCAD below the support levels.

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Looking at the hourly chart above, the price has fallen below head and shoulder neckline support, the 38.2% retracement and the 100 hour moving average (blue line) at the 1.1033-1.1037 area. Stay below, and the bears remain in control and should be able to push toward the 1.10156 (50% retracement of the last leg up) and then 1.0986-96. The 1.0986-96 was a ceiling in the month of August (see daily chart below). A move below that level would discredit the break higher seen just last week. Look for buyers against the area on the first test.

The USDCAD had a ceiling at the 1.0986-96 area in August.

The USDCAD had a ceiling at the 1.0986-96 area in August.