USD/CAD: Extending Lower
USD/CAD has broken the key support at 1.0858 (09/04/2014 low, see also the 38.2% retracement). A second leg lower (echoing the one from 1.1279 to 1.0858) is likely underway. The minimum downside risk is 1.0731 (see the 50% retracement and the 200 day moving average). Hourly resistances can be found at 1.0908 (07/05/2014 high) and 1.0943 (14/04/2014 low).
In the longer term, the technical structure looks like a rounding bottom with a minimum target at 1.1725. However, the key resistance given by the 50% retracement (around 1.1236) of the decline from the September 2009 peak at 1.3065 remains thus far intact. Key supports are given by the 200 day moving average (around 1.0711) and 1.0559 (29/11/2013 low).