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Bearish Conditions Still Dominate

USDCAD TECHS
  • RES 4: 1.2957 High Dec 21 and a reversal trigger
  • RES 3: 1.2891 50-day EMA
  • RES 2: 1.2880 High Dec 24
  • RES 1: 1.2775/98 20-day EMA / Jan 4 high
  • PRICE: 1.2754 @ 06:43 GMT Jan 11
  • SUP 1: 1.2659/30 Low Jan 8 / Low Jan 6
  • SUP 2: 1.2603 1.236 proj of Oct 29 - Nov 9 downleg from Nov 13 high
  • SUP 3: 1.2586 Low Apr 19, 2018
  • SUP 4: 1.2536 1.382 proj of Oct 29 - Nov 9 downleg from Nov 13 high

USDCAD traded lower last week registering a low print of 1.2630 on Jan 6. The recent break of 1.2688, Dec 15 low confirms a resumption of the downtrend that has been in place since the reversal in March 2020. The focus is on weakness towards 1.2603 next, a Fibonacci projection. Note that recently we had focused on the potential for a stronger corrective bounce. A breach of 1.2798, Jan 4 high, is required to signal the start of a correction.

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