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USDCAD TECHS: Bear Trend Intact

USDCAD TECHS
  • RES 4: 1.3646 High Aug 15
  • RES 3: 1.3641 50-day EMA 
  • RES 2: 1.3574 20-day EMA  
  • RES 1: 1.3565 High Sep 03
  • PRICE: 1.3490 @ 07:55 BST Sep 06
  • SUP 1: 1.3441 Low Aug 28 and the bear trigger 
  • SUP 2: 1.3420 Low Mar 08
  • SUP 3: 1.3358 76.4% retracement of the Dec 27 - Aug 5 bull leg
  • SUP 4: 1.3288 Low Jan 05

Recent gains in USDCAD appear to have been a correction and the recent impulsive sell-off, in August, reinforces a bearish condition. Note too that moving average studies are in a bear-mode set-up, highlighting a dominant downtrend. A resumption of bearish activity would signal scope for a move towards 1.3358, a Fibonacci retracement. On the upside, initial firm resistance to watch is at 1.3574 the 20-day EMA.

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