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Key Resistance Remains Intact For now

USDCAD TECHS
  • RES 4: 1.3830 2.0% 10-dma envelope
  • RES 3: 1.3805 High Mar 24
  • RES 2: 1.3695 High Mar 28
  • RES 1: 1.3668 High Apr 28 and key resistance
  • PRICE: 1.3621 @ 16:14 BST May 3
  • SUP 1: 1.3528 Low May 2
  • SUP 2: 1.3473 Low Apr 21
  • SUP 3: 1.3385/3302 Low Apr 19 / 14 and the bear trigger
  • SUP 4: 1.3275 Low Feb 14

USDCAD traded higher Tuesday. The bounce appears to be a correction and a bearish threat remains present. The failure to hold on to last Friday’s high exposes 1.3540, the 20-day EMA, which has been pierced. This EMA represents an important level and a break would highlight a stronger bearish threat, signalling scope for 1.3473, the Apr 21 low. On the upside, a recovery and break of 1.3668, Apr 28 high, would reinstate the recent bull cycle.

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