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Shooting Star Reversal Candle

USDCAD TECHS
  • RES 4: 1.3024 38.2% retracement of the Mar ‘20 - Jun ‘21 downleg
  • RES 3: 1.3018 2.0% 10-dma envelope
  • RES 2: 1.2949 High Aug 20 and a key resistance
  • RES 1: 1.2937 High Dec 15
  • PRICE: 1.2834 @ 06:42 GMT Dec 16
  • SUP 1: 1.2721 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 yesterday and breached 1.2854, Dec 3 high and 1.2896, Sep 20 high. Key resistance however at 1.2949, Aug 20 high remains intact. The pair also failed to hold onto yesterday’s gains and closed at the session low. In pattern terms, yesterday’s activity is a shooting star reversal candle and represents a concern for bulls. A continuation lower would expose the 20-day EMA at 1.2721. A break of 1.2949 would resume bullish activity.

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