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Breaking Lower

USDCAD TECHS
  • RES 4: 1.2934 High Dec 22
  • RES 3: 1.2850 50-day EMA
  • RES 2: 1.2835 High Nov 11 and a key resistance
  • RES 1: 1.2799 High Jan 18
  • PRICE: 1.2646 @ 17:35 GMT Jan 20
  • SUP 1: 1.2606 Low Jan 20
  • 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 hit a new cycle low print of 1.2606 Wednesday following a slightly hawkish policy statement from the Bank of Canada. This affirms the underlying downtrend with the focus on 1.2603 next, a Fibonacci projection. Moving average studies are in a bear mode reinforcing current trending conditions. On the upside, near-term resistance is located at 1.2835, Jan 11 high. A break of this hurdle is required to signal a short-term reversal and the start of a correction.

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