USD/CAD: Consolidating After Sharp Decline
USD/CAD's wild swings on 5 October has created a support at 0.9736 (05/10/2012 low), which is strengthened by the proximity of the short-term support at 0.9726. An hourly resistance can be found at 0.9812 (05/10/2012 high).
The succession of lower highs since March 2009 favours an underlying bearish bias. Indeed, the break of the support at 0.9725 opens the way for a medium-term move towards the strong support at 0.9407. A break of the resistance at 0.9949 is needed to negate this bias.