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TECHS: Extends Current Downleg

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 bull trigger
  • RES 1: 1.3341 High Oct 7
  • PRICE: 1.3212 @ 17:24 BST Oct 8
  • SUP 1: 1.3207 50.0% retracement of the Sep 1 - 30 rally
  • SUP 2: 1.3171 Low Sep 21
  • SUP 3: 1.3157 61.8% retracement of the Sep 1 - 30 rally
  • SUP 4: 1.3128 Low Sep 16

USDCAD traded lower still into the Thursday close extending the pullback that started on Sep 30. The move lower highlights a clear break of trendline support drawn off the Sep 1 low and suggests scope for weakness towards 1.3207, a Fibonacci retracement. A breach of 1.3207 would open 1.3171, Sep 21 low. To offset a deeper decline, the pair needs to trade above resistance at 1.3341, Oct 7 high. This would refocus attention on key resistance at 1.3421.

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