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USDCAD TECHS: Rally Persists, Not Yet Overbought

USDCAD TECHS
  • RES 4: 1.3899 High Nov 1 and a key resistance    
  • RES 3: 1.3846/55 High Apr 16 and the bull trigger / High Nov 10 2023
  • RES 2: 1.3845 1.0% 10-dma envelope
  • RES 1: 1.3800 High Jul 24
  • PRICE: 1.3795 @ 08:40 BST Jul 24
  • SUP 1: 1.3590/89 Low May 16 and a key support / Intraday low 
  • SUP 2: 1.3547 Low Apr 9
  • SUP 3: 1.3512 50.0% retracement of the Dec 27 - Apr 16 bull cycle
  • SUP 4: 1.3478 Low Apr 4 

The impulsive rally in USD/CAD persists, with the pair showing above 1.3792 resistance this week. Further gains target the 1.0% 10-dma envelope at 1.3845 initially ahead of the more important level of 1.3846 - the Apr 16 high and bull trigger. The pair is yet to flash overbought on the 14-day RSI, meaning momentum could build further before any consolidative phase. A return lower looks to 1.3590 as first major support. 

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