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TECHS: Trading Below Trendline Support

DOLLAR-CANADA
  • RES 4: 1.3486 Low Jun 23 and a former breakout level
  • RES 3: 1.3460 High Jul 30
  • RES 2: 1.3421 High Sep 30 and the intraday bull trigger
  • RES 1: 1.3332 High Oct 2
  • PRICE: 1.3271 @ 16:38 BST Oct 6
  • SUP 1: 1.3242 Low Oct 6
  • SUP 2: 1.3207 50.0% retracement of the Sep 1 - 30 rally
  • SUP 3: 1.3171 Low Sep 21
  • SUP 4: 1.3157 61.8% retracement of the Sep 1 - 30 rally

The recent pullback in USDCAD is still considered a correction. Price however has breached trendline support drawn off the Sep 1 low. A deeper pullback would signal scope for weakness towards 1.3207 next, a Fibonacci retracement. Weakness through this level would open 1.3171, Sep 21 low. Initial resistance has been defined at 1.3332, Oct 2 high where a break is required to ease bearish pressure and expose 1.3421 again, Sep 30 high.

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

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