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Corrective Cycle Still In Play

USDCAD TECHS
  • RES 4: 1.4000 Psychological round number
  • RES 3: 1.3977 High Oct 13
  • RES 2: 1.3898 High Oct 14
  • RES 1: 1.3805/3862 High Mar 24 / 10 and the bull trigger
  • PRICE: 1.3615 @ 18:30 BST Mar 28
  • SUP 1: 1.3603 Low Mar 28
  • SUP 2: 1.3598 50-day EMA
  • SUP 3: 1.3515 Low Feb 22
  • SUP 4: 1.3442 Low Feb 20 / 21

The current bear cycle in USDCAD is still considered corrective and this is allowing a recent overbought condition to unwind. A key support area to watch lies at 1.3598, the 50-day EMA. A clear break of the average would signal scope for a deeper corrective pullback. On the upside, the bull trigger is at 1.3862, the Mar 10 high. Clearance of this level would resume the uptrend and open 1.3977, the Oct 13 high.

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

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