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Impulsive Rally

USDCAD TECHS
  • RES 4: 1.3977 High Oct 13 and a key resistance
  • RES 3: 1.3907 2.0% 10-dma envelope
  • RES 2: 1.3898 High Oct 14
  • RES 1: 1.3817 Intraday high
  • PRICE: 1.3794 @ 08:08 GMT Mar 9
  • SUP 1: 1.3705/3665 High Dec 16 / High Feb 24
  • SUP 2: 1.3571 20-day EMA
  • SUP 3: 1.3508 50-day EMA
  • SUP 4: 1.3442 Low Feb 20 / 21

USDCAD maintains a firmer tone and this week’s rally has strengthened a bullish theme. The pair has cleared the bull trigger at the Dec 16 high of 1.3705 and has also traded above the 1.3800 handle. Scope is seen for gains towards the 2.0% 10-dma envelope of 1.3907. Initial support is seen at 1.3705, the recent breakout level. A pullback would be considered corrective and this would allow an overbought trend condition to unwind.

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