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USD/CAD Recovers After Piercing Support Levels

On Wednesday, the USD/CAD shortly pierced the combined support of the 1.2720/1.2732 zone and the lower trend line of the November channel up pattern. Although, afterwards the rate recovered to the 1.2830 level, which provided resistance.

The resistance was enough for a retracement down to occur. By the start of Thursday’s European trading hours, the pair had reached the 1.2780 level and the 50-hour simple moving average at it.

A potential move below the 1.2780 level could result in a test of the support of the November channel up pattern’s lower trend line near 1.2760. Below the trend line, the 1.2720/1.2732 support zone and the 200-hour simple moving average might stop a decline.

On the other hand, a recovery of the USD against the CAD might result in the test of this week’s high levels at 1.2830/1.2840.

Dukascopy Swiss FX Group
Dukascopy Swiss FX Grouphttp://www.dukascopy.com/
This overview can be used only for informational purposes. Dukascopy SA is not responsible for any losses arising from any investment based on any recommendation, forecast or other information herein contained.

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