USD/CAD: Monitor The Support at 1.0891
USD/CAD is weakening. However, the potential medium-term base formation and the short-term falling wedge favour a bullish bias. Monitor the support area between 1.0891 and 1.0875 (50% retracement). Resistances can be found at 1.0961 (05/06/2014 high) and 1.1004.
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 1.0758) and 1.0559 (29/11/2013 low).