USDCAD’s recovery proved very short-lived as the pair has been dropping aggressively over the past four sessions. It is currently hovering inside the busy 1.3190-1.3225 area with the bears probably keen on continuing the recent series of lower highs and lower lows. The next trough has to occur below the 1.3116 low recorded on June 27 in order to keep this structure intact and valid. The continued convergence of the 100- and 200-day simple moving averages (SMAs) supports the possibility of another sizeable move, but the bears have to look at the momentum indicators for clues on the direction of this next move. With ... (full story)