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Reverses Initial Gains

USDCAD TECHS
  • RES 4: 1.2964 High Dec 20 and the bull trigger
  • RES 3: 1.2924 High Dec 22
  • RES 2: 1.2848 High Dec 27 and a key near-term resistance
  • RES 1: 1.2813 High Dec 30
  • PRICE: 1.2726 @ 17:00 GMT Jan 6
  • SUP 1: 1.2667/2621 Low Jan 4 / Low Dec 31 and the bear trigger
  • SUP 2: 1.2608 Low Dec 8 and key support
  • SUP 3: 1.2585 Low Nov 19
  • SUP 4: 1.2546 Low 61.8% retracement of the Oct - Dec rally

USDCAD gave up early gains into the Thursday close, but remains above last week’s low of 1.2621 on Dec 31 - a key short-term support. Monday’s rally is a bullish engulfing candle. The pattern highlights a base at 1.2621 and today’s resumption of strength opens 1.2848, Dec 27 high and a key near-term resistance. On the downside, sub 1.2621 levels would cancel the reversal pattern and instead open 1.2608, the Dec 8 low.

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