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Bounce Off Trend Lows Is Likely A Correction

USDCAD TECHS
  • RES 4: 1.3392 50-day EMA
  • RES 3: 1.3355 High Jun 15
  • RES 2: 1.3286 20-day EMA
  • RES 1: 1.3246 High Jun 21
  • PRICE: 1.3224 @ 08:03 BST Jun 28
  • SUP 1: 1.3084 1.618 proj of the Apr 28 - May 8 - May 26 price swing
  • SUP 2: 1.2992 50.0% retracement of the Jun - Oct 2022 bull rally
  • SUP 3: 1.2954 Low Sep 13 2022
  • SUP 4: 1.2895 Low Aug 25

USDCAD initially traded lower Tuesday before bouncing off the day’s lowest levels. Nonetheless, the trend outlook remains bearish and short-term gains are considered corrective. Moving average studies are in a bear-mode position too, highlighting current sentiment. Scope is seen for a move towards 1.2992, a Fibonacci retracement. On the upside, firm resistance is seen at 1.3286, the 20-day EMA.

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