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Long-Legged Doji

USDCAD TECHS
  • RES 4: 1.2699 High Mar 17
  • RES 3: 1.2632 50-day EMA
  • RES 2: 1.2621 200 DMA
  • RES 1: 1.2612 High Mar 28
  • PRICE: 1.2600 @ 16:54 BST Apr 7
  • SUP 1: 1.2479 Low Apr 6
  • SUP 2: 1.2403/2379 Low Apr 5 / 1.0% 10-dma envelope
  • SUP 3: 1.2387 Low Nov 10 2021
  • SUP 4: 1.2328 Low Oct 29 2021

USDCAD has recovered from its recent lows and maintains a firmer tone. Tuesday’s price action, in Japanese candlestick terms, is a long-legged doji. This is a potential short-term reversal signal and if correct, suggests potential for a correction near-term. The continuation higher narrows the gap with the 50-day EMA that intersects at 1.2632. The broader trend remains down, key support and the bear trigger has been defined at 1.2403, Tuesday’s low.

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