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Southbound

USDCAD TECHS
  • RES 4: 1.3777 High Nov 16
  • RES 3: 1.3712 High Nov 24
  • RES 2: 1.3619 High Dec 7 and 12 and key short-term resistance
  • RES 1: 1.3415/3518 High Dec 15 / 20-day EMA
  • PRICE: 1.3331 @ 14:27 GMT Dec 21
  • SUP 1: 1.3312 Low Dec 20
  • SUP 2: 1.3283 76.4% retracement of the Jul 14 - Nov 1 bull phase
  • SUP 3: 1.3206 2.0% 10-dma envelope
  • SUP 4: 1.3184 Low Aug 1

The USDCAD trend outlook remains bearish and the continuation lower this week reinforces this condition. The pair has recently cleared the bear trigger at 1.3480, the Dec 4 low. That break confirmed a resumption of the downtrend and maintains the price sequence of lower lows and lower highs. Sights are on 1.3283, a Fibonacci retracement. On the upside, key short-term resistance has been defined at 1.3619, the Dec 7 / 12 high.

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

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