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50-Day EMA Remains Exposed

USDCAD TECHS
  • RES 4: 1.3002 2.0% 10-dma envelope
  • RES 3: 1.2949 High Aug 20 and a key resistance
  • RES 2: 1.2896 High Sep 20
  • RES 1: 1.2820/2854 High Dec 13 / High Dec 3 and the bull trigger
  • PRICE: 1.2796 @ 17:00 GMT Dec 13
  • SUP 1: 1.2610/08 50-day EMA / Low Dec 8
  • SUP 2: 1.2571 50.0% retracement of the Oct 21 - Dec 3 rally
  • SUP 3: 1.2493 Low Nov 16
  • SUP 4: 1.2422 61.8% retracement of the Oct 21 - Dec 3 rally

USDCAD reversed lower last week but did find support at 1.2608, the Dec 8 low. The sharp pullback has exposed the 50-day EMA at 1.2610. Clearance of this average would strengthen the bearish threat and open 1.2571, a Fibonacci retracement. 1.2768, the Dec 7 high, is the first resistance. A break would ease bearish pressure and attention would turn to the key resistance and bull trigger at 1.2854, Dec 3 high.

MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com

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