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Corrective Rally Holds

USDCAD TECHS
  • RES 4: 1.3482 200-dma
  • RES 3: 1.3471 50-day EMA
  • RES 2: 1.3409 1.0% 10-dma envelope
  • RES 1: 1.3372 High Jan 03 & 05
  • PRICE: 1.3364 @ 09:00 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, however the corrective bounce is holding through the first week of the year, turning focus to the 50-day EMA above at 1.3471. 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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