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Corrective Rally Falters

USDCAD TECHS
  • RES 4: 1.3482 200-dma
  • RES 3: 1.3469 50-day EMA
  • RES 2: 1.3409 1.0% 10-dma envelope
  • RES 1: 1.3399 High Jan 05
  • PRICE: 1.3327 @ 16:08 GMT Jan 05
  • SUP 1: 1.3177 Low Dec 27
  • SUP 2: 1.3093 Low Jul 14 and key support
  • SUP 3: 1.3002 2.0% 10-dma envelope
  • SUP 4: 1.2992 50.0% retracement of the 2021 - 2022 bull phase

The broader USDCAD trend outlook remains bearish, and with the Friday rally sold, focus could again turn lower. The 50-day EMA resistance above at 1.3469 has held, keeping the over-arching downtrend intact. The pair last week cleared a bear trigger at 1.3480, the Dec 4 low. Furthermore, all key short-term retracement points have been breached. On any return lower, sights are on 1.3093, the Jul 14 low and a key support.

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