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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: 1.3251 20-day EMA
  • PRICE: 1.3179 @ 09:27 BST Jul 21
  • 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 have been firmly sold for the duration of the week, however strength into the Thursday close has yet to be fully pared. Nonetheless the onus remains lower for now. Early weakness Thursday keeps the medium-term trend pointed lower, and has 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.

MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com

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