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Bearish Conditions Still Dominate

DOLLAR-CANADA
  • RES 4: 1.3399 High Aug 7 and key resistance
  • RES 3: 1.3347 High Aug 12
  • RES 2: 1.3319 20-day EMA
  • RES 1: 1.3272 High Aug 14 and key resistance
  • PRICE: 1.3180 @ 18:12 BST Aug 20
  • SUP 1: 1.3133/19 Low Aug 19 / Low Jan 24
  • SUP 2: 1.3089 3.0% Lower Bollinger Band
  • SUP 3: 1.3057 61.8% retracement of the 2017 - 2020 rally
  • SUP 4: 1.3002 2.0% 10-dma envelope

USDCAD remains bearish despite Wednesday's recovery. The pair this week extended its downward trajectory printing fresh cycle lows below 1.3200. The downtrend is reinforced by the bearish sequence of lower lows and lower highs that continues to dominate. Scope is seen for a move towards 1.3119, Jan 24 low and 1.3057, a Fibonacci retracement. Further out, the focus is on the Dec 31 2019 low of 1.2952. Resistance is at 1.3272, Aug 14 high.

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