For more than half month we see a solid bullish sentiment on USDCAD going up by about 300 pips. 1.3424 is the initial support I am watching for. If it breaks it, this could be a sign for trend correction.
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USD/CAD is up 0.01% at 1.3306 and a break above 1.3325 (bottom of the 10-month up channel) would expose 1.3359 (61.8% Fibo of 1.3601-1.2967) and finally 1.3487 (high Mar.15). On the downside, the immediate support lines up at 1.3276 (low Mar.16) seconded by 1.3220 (55-day sma) and then 1.3178 (200-day sma).
Bulls would be eyeing for a decisive move through mid-1.3300s, above which the pair is likely to accelerate the recovery move towards 1.3375-80 horizontal resistance before surpassing the 1.3400 handle to test 1.3425-30 resistance area. On the downside, a convincing break below 100-day SMA near the 1.3300 handle would turn the pair vulnerable to break below two-week lows support near 1.3275 level and head towards testing 1.3230 horizontal support.
On the upside, 1.3370-75 area remains immediate resistance, which if cleared is likely to lift the pair towards reclaiming the 1.3400 handle, en-route 1.3425-30 horizontal resistance. On the downside, sustained weakness back below 1.3315-10 immediate support now seems to drag the pair back below 100-day SMA support near 1.3295 region towards retesting 1.3275 support area ahead of mid-1.3200s.
USD/CAD has formed a pair of bullish spinning top bars and an inverted hammer bar at 1.3315 on the H4 time frame, I think that may be the end of the current move to the downside but the breakout below the flag that has been developing for months now on the large time frames suggests a long-term drop.
Usd/Cad is up 0.14% at 1.3370 and a break above 1.3387 (high Mar.22) would expose 1.3496 (high Mar.14) and finally 1.3536 (2017 high Mar.9). On the downside, the next support lines up at 1.3316 (low Mar.23) followed by 1.3297 (100-day sma) and finally 1.3262 (low Mar.21).
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