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Bearish Engulfing Candle Still In Play

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: 1.2644/76 High Apr 18 / High Apr 13 and a bull trigger
  • PRICE: 1.2574 @ 08:06 BST Apr 19
  • SUP 1: 1.2522 Low Apr 14
  • SUP 2: 1.2479 Low Apr 6
  • SUP 3: 1.2460/2403 1.0% 10-dma envelope / Low Apr 5
  • SUP 4: 1.2387 Low Nov 10 2021

USDCAD remains below last week's high of 1.2676 (Apr 13). The pullback does threaten the recent bull theme and highlights the fact that price has so far failed to remain above the 50-day EMA that intersects at 1.2625 today. Note that last Wednesday’s session appears to be a bearish engulfing candle. If correct, this highlights a reversal. The focus is on 1.2522, Apr 14 low. On the upside, clearance of 1.2676 would be bullish.

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