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Shallow Pullback Confirmed Corrective

USDCAD TECHS
  • RES 4: 1.3661 High Nov 27
  • RES 3: 1.3623 61.8% retracement of the Nov 1 - Dec 27 bear leg
  • RES 2: 1.3608 High Dec 13
  • RES 1: 1.3542 High Jan 17
  • PRICE: 1.3482 @ 16:28 GMT Jan 24
  • SUP 1: 1.3420/3343 20-day EMA / Low Jan 12
  • SUP 2: 1.3288/3177 Low Jan 5 / Low Dec 27
  • SUP 3: 1.3093 Low Jul 14 and key support
  • SUP 4: 1.3158 2.0% 10-dma envelope

USDCAD maintains a firmer tone, with prices recovering sharply off lows after the BoC decision. This works in favour of the latest shallow pullback proving corrective. Last week’s gains resulted in a move above the 50-day EMA, at 1.3459, confirming an extension of the bull cycle that started Dec 27. This opens 1.3538, 50.0% of the Nov 1 - Dec 27 bear leg. The retracement has been pierced, a clear break would expose 1.3608, Dec 13 high. Initial support is 1.3420, the 20-day EMA.

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

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