USD/CAD Update – 12/12/2017 (08:40am) – by Arjun Lakhanpal

USD/CAD Update – 12/12/2017 (08:40am): As the short-term range continues to develop, last week’s impulsive bounce highlights an important test at the 1.29/1.30 resistance zone with growing risk of an upside breakout. Note this follows the effective test and hold of the important 1.2665/1.2590 support area, which includes the mid-October breakout area and the 38.2% retracement of the rally; breaks should help define a deeper pullback initially into the 1.2435/30 area. To reassert the short-term upside bias, an extension above the 1.29/1.30 zone (50% retracement/chart location/200-day moving average) is necessary to allow for a closer test of the 1.34 area (76.4% retracement).