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Downtrend Remains Intact

DOLLAR-CANADA
  • RES 4: 1.3347 High Aug 12
  • RES 3: 1.3276 20-day EMA
  • RES 2: 1.3272 High Aug 14 and key near-term resistance
  • RES 1: 1.3245 High Aug 20
  • PRICE: 1.3181 @ 06:20 BST Aug 26
  • SUP 1: 1.3133/19 Low Aug 19 / Low Jan 24
  • SUP 2: 1.3057 61.8% retracement of the 2017 - 2020 rally
  • SUP 3: 1.3036 Low Jan 22
  • SUP 4: 1.2976 Low Jan 8

USDCAD is consolidating but remains bearish. Last week, the pair extended its move lower printing fresh cycle lows at 1.3133 on Aug 19. The downtrend is reinforced by the bearish sequence of lower lows and lower highs that still dominates. Scope is seen for weakness towards 1.3119, Jan 24 low and 1.3057, a Fibonacci retracement. Further out, attention is on the Dec 31 2019 low of 1.2952. Initial resistance is at 1.3245.

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