USD/CAD: Immediate downside pressure to persist - Commerzbank

 Axel Rudolph, Analysts at Commerzbank, notes that the USD/CAD pair could test 1.2246/04 zone on a break below 1.2357, its monthly low.

Key Quotes:

 “USD/CAD’s recent slide has so far taken it to its current January low at 1.2357, to below the July low at 1.2416. It thus nearly reached the 55 month moving average at 1.2313. Below it the 78.6% Fibonacci retracement of the September-to-December advance at 1.2246, together with the September 20 low at 1.2204, could also be reached.“

“Further down sits key support at the 1.2064 September trough. If also slipped through, we would have to allow for the April 2015 low at 1.1922 to be revisited. Immediate downside pressure should persist while no rise above the 1.2588 current January high is seen. Above it lies the 1.2626/67 resistance area which is made up of the late August high and the November and December 5 lows.”