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Sell-On-Rallies Remains Dominant Theme

USDCAD TECHS
  • RES 4: 1.3387 High Jul 7 and a key resistance
  • RES 3: 1.3361 50-dma
  • RES 2: 1.3304 High Jul 10
  • RES 1: 1.3c251 20-day EMA
  • PRICE: 1.3173 @ 16:12 BST Jul 19
  • SUP 1: 1.3084 1.618 proj of the Apr 28 - May 8 - May 26 price swing
  • SUP 2: 1.3032 1.764 proj of the Apr 28 - May 8 - May 26 price swing
  • SUP 3: 1.2992 50.0% retracement of the 2021 - 2022 bull leg
  • SUP 4: 1.2949 2.00 proj of the Apr 28 - May 8 - May 26 price swing

Rallies in USDCAD were sold Friday, again confirming that recent short bouts of strength are likely corrective in nature and the onus remains lower for now. Subsequent weakness into the Tuesday close keeps the medium-term trend pointed lower for now. Last week’s move lower resulted in a break of 1.3117, the Jun 27 low. This confirms a resumption of the downtrend that started on Oct 13 2022. The break lower opens 1.3084, and 1.3032, Fibonacci projection points.

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