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Dips Considered Corrective

USDCAD TECHS
  • RES 4: 1.2964 High Dec 20 and a key resistance
  • RES 3: 1.2924 High Dec 22
  • RES 2: 1.2843 76.4% retracement of the Dec 20 - Jan 19 sell-off
  • RES 1: 1.2814 High Jan 6 and a key resistance
  • PRICE: 1.2690 @ 17:56 GMT Feb 1
  • SUP 1: 1.2654 20-day EMA
  • SUP 2: 1.2560 Low Jan 26
  • SUP 3: 1.2451/48 Low Jan 19 / 76.4% of the Oct - Dec rally
  • SUP 4: 1.2387 Low Nov 10

Despite Monday’s pullback, the USDCAD outlook remains bullish. Last week’s gains confirmed an extension of the recovery from 1.2451, Jan 19 low. Price has cleared the 50-day EMA and the break has resulted in a move through 1.2768, 61.8% of the Dec 20 - Jan 19 sell-off. This opens 1.2843 next, the 76.4% retracement. On the downside, initial firm support lies at 1.2560, the Jan 26 low. The 20-day EMA, at 1.2654, is first support.

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