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Downside Risk

DOLLAR-CANADA
  • RES 4: 1.3486 Low Jun 23 and a former breakout level
  • RES 3: 1.3460 High Jul 30
  • RES 2: 1.3421 High Sep 30 and the intraday bull trigger
  • RES 1: 1.3341 High Oct 7
  • PRICE: 1.3249 @ 06:23 BST Oct 8
  • SUP 1: 1.3242 Low Oct 6
  • SUP 2: 1.3207 50.0% retracement of the Sep 1 - 30 rally
  • SUP 3: 1.3171 Low Sep 21
  • SUP 4: 1.3157 61.8% retracement of the Sep 1 - 30 rally

The recent pullback in USDCAD is still considered a correction. Price has however breached trendline support Tuesday, drawn off the Sep 1 low. A deeper pullback would signal scope for weakness towards 1.3207, a Fibonacci retracement. Yesterday's move lower has defined a key short-term resistance at 1.3341 where a break is required to ease the current bearish pressure and refocus attention on key resistance at 1.3421, Sep 30 high.

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