USDCAD: M/T target lowered

A daily close below support at 1.3120 would cause the current sideways consolidation in USDCAD to turn into a deeper corrective phase, according to George Davis, Chief FIC Technical Analyst at RBC Capital Markets.

Davis thinks such a deepening of the corrective phase would target 1.2953 and 1.2872 and would provide a good opportunity to buy into the longer-term uptrend. However, resistance at 1.3267 will have to be cleared in order to end the correction, with a close above the 2015 high at 1.3352 required to ignite a new bullish phase.

Davis has lowered his 1 to 3 month price target from 1.35 to 1.33 in light of last Thursday’s FOMC developments and subsequent price action, but still remains bullish in the medium-term.

See Chart.