JP Morgan – USD/CAD Downside To 1.2047

JP Morgan, via EFX has stated that a “move below 1.24 puts bears firmly in control and sets the market up for an eventual retest of the 1.2047 Aug 2011 50% retrace”. They have also stated that the “50 day MA now marks tactical resistance”. Will we see the 50 day MA retested as resistance? Highlighting the MA on the chart below we can see it currently sits around the broken bullish structure which has not yet been retested as a resistance zone.

USDCAD 1D Chart, 20 October 2021.