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Bear Cycle Accelerates

USDCAD TECHS
  • RES 4: 1.3856/3946 High Aug 6 / 5 and bull trigger
  • RES 3: 1.3791 High Aug 7
  • RES 2: 1.3641/3686 High Aug 20 / 20-day EMA
  • RES 1: 1.3617 High August 23
  • PRICE: 1.3478 @ 19:38 BST Aug 26
  • SUP 1: 1.3499 Low Jun 23
  • SUP 2: 1.3420 Low Mar 8
  • SUP 3: 1.3358 76.4% retracement of the Dec 27 - Aug 5 bull leg
  • SUP 4: 1.3288 Low Jan 5

USDCAD traded lower Monday, marking an extension once again of the bear cycle that started Aug 5. The move lower reinforces the current bearish condition. Furthermore, 1.3589, the Jul 11 low, has recently been cleared, strengthening a bearish theme. This sets the scene for an extension towards 1.3358, a Fibonacci projection. On the upside, initial firm resistance to watch is at 1.3617, Friday’s intraday high.

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