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USDCAD Bouncing off Weekly Chart Prior Downchannel Resistance

The USDCAD is edging higher going into today’s European morning, trying to form a 4th straight green daily candle. Significantly, the USDCAD is back above the psychologically key 1.27 whole figure level, with a catalyst for retesting the August high coming as early as today following the Bank of Canada’s Governor Macklem comments at noon EST. More volatility can be expected after the 830am EST Friday release of Canadian employment and US PPI data. Bulls are increasingly positioning for a continuation of a major trend reversal effort with the USDCAD successfully holding these past 3 weeks, the weekly chart's prior downchannel resistance. The weekly, daily and 4hr RSI, Stochastics and MACD are mostly bottomish, rallying or consolidating recent gains. I am looking to go long in the green zone (of the daily chart), targeting the red zone for Wednesday. The amber/yellow zone is where I might place a stop if I was a swing trader (although in my personal account with which I seldom hold overnight I sometimes set my stops tighter).


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