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Corrective Cycle Still In Play

USDCAD TECHS
  • RES 4: 1.3427 High Jun 7
  • RES 3: 1.3382 50-day EMA
  • RES 2: 1.3355 High Jun 15
  • RES 1: 1.3280/86 20-day EMA / High Jun 29
  • PRICE: 1.3235 @ 16:15 BST Jun 30
  • SUP 1: 1.3190/3117 Low Jun 28 / 27 and key support
  • SUP 2: 1.3084 1.618 proj of the Apr 28 - May 8 - May 26 price swing
  • SUP 3: 1.2992 50.0% retracement of the Jun - Oct 2022 bull rally
  • SUP 4: 1.2954 Low Sep 13 2022

Demand for buying on dips helped USDCAD recover from an intraday pullback on Friday, prompting the pair to hold the week’s gains. Nonetheless, the latest recovery is considered corrective and the trend outlook remains bearish. Moving average studies are in a bear-mode position, highlighting a downtrend. A resumption of weakness would open 1.2992, a Fibonacci retracement. On the upside, firm resistance is seen at 1.3280, the 20-day EMA. Clearance of this level would expose the 50-day EMA, at 1.3382.

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

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