SELL 1.3180; TP1 1.3150; TP2 1.3125; SL 1.3200
USD/CAD is actively examining levels beneath the July-September support line. Besides, it has slipped beneath all the key daily MAs (200, 100, and 50). The price action that has been unfolding since the begin of September so far corresponds to the bullish harmonic “Shark” pattern, which implies that the price should decline to the 1.3125/20 area (50-month MA, 200-week MA) first to complete the pattern before turning higher.
The depressing data from the United States which increases the odds of the Fed’s rate cut in October and the better-than-expected figures from Canada may be the drivers of the short-term movement to the downside. Watch for the break beneath the support at 1.3180 to trigger the move to the mentioned downside marks.
If USD/CAD returns above 1.3230 (100-day MA), bulls will regain power and we’ll have to rethink the situation.