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Bearish Engulfing Candle

USDCAD TECHS
  • RES 4: 1.2783 76.4% retracement of the Mar 8 - Apr 5 bear leg
  • RES 3: 1.2711 61.8% retracement of the Mar 8 - Apr 5 bear leg
  • RES 2: 1.2699 High Mar 17
  • RES 1: 1.2676 High Apr 13 and a bull trigger
  • PRICE: 1.2622 @ 13:20 BST Apr 18
  • SUP 1: 1.2522 Low Apr 14
  • SUP 2: 1.2479 Low Apr 6
  • SUP 3: 1.2429/2403 1.0% 10-dma envelope / Low Apr 5
  • SUP 4: 1.2387 Low Nov 10 2021

USDCAD traded higher initially Wednesday, reaching 1.2676, before reversing into the close. This price action partially reversed Thursday, with the pair closer to Wednesday’s highs through the London close. The pullback does threaten the recent bull theme and a deeper retracement would open 1.2479, the Apr 6 low. Note that Wednesday’s session appears to be a bearish engulfing candle. On the upside, clearance of 1.2676 would instead confirm a resumption of bullish activity.

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

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