USD/CAD may rise 39 - 56 pips

Our pivot point is at 1.3776.

Our preference

Look for a drop towards 1.3776 before a bounce.

Alternative scenario

The downside breakout of 1.3776 would call for 1.3747 and 1.3730.

Comment

The RSI is above 50. The MACD is below its signal line and negative. The penetration of 50 on the RSI should trigger further losses. Moreover, the pair is trading under its 20 period moving average (1.3808) but above its 50 period moving average (1.3803).

Supports and resistances

1.3898 **

1.3880 *

1.3863 **

1.3846

1.3807 last

1.3788

1.3776 **

1.3747 *

1.3730 **

Number of asterisks represents the strength of support and resistance levels.