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USD/CAD Outlook Deteriorates as Oil Rally Compounds Fed Effect

CAD
  • USDCAD printing new lows in recent trade, with today's price action driven by the persistent Fed-inspired USD weakness as well as solid oil prices.
  • This has prompted the USDCAD trend outlook to deteriorate sharply through the London close, as the bear trigger at 1.3480, the Dec 4 low, has given way.
  • This confirms a resumption of the downtrend and ends the consolidation phase posted since the beginning of December. Sights are on 1.3401, the 61.8% retracement of the Jul 14 - Nov 1 bull phase.

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