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Shooting Star Candle Warns Of A Top

USDCAD TECHS
  • RES 4: 1.3024 38.2% retracement of the Mar ‘20 - Jun ‘21 downleg
  • RES 3: 1.3016 2.0% 10-dma envelope
  • RES 2: 1.2949 High Aug 20 and a key resistance
  • RES 1: 1.2858/2937 High Dec 15
  • PRICE: 1.2791 @ 06:46 GMT Dec 17
  • SUP 1: 1.2726 20-day EMA
  • SUP 2: 1.2608 Low Dec 8 and key support
  • SUP 3: 1.2585 Low Nov 19
  • SUP 4: 1.2493 Low Nov 16

USDCAD traded higher Wednesday and breached 1.2854, Dec 3 high and 1.2896, Sep 20 high. Key resistance however at 1.2949, Aug 20 high remains intact and the pair has since pulled back. In pattern terms, Wednesday’s price action is a shooting star reversal candle and represents a concern for bulls. A continuation lower would expose the 20-day EMA at 1.2726. A break of 1.2949 is required to resume bullish activity.

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