USDCAD TECHS: Bull Cycle Extension

• RES 4: 1.4175 High Jul 13
• RES 3: 1.4129 High Jul 28  
• RES 2: 1.4080 High Aug 4 and 5 
• RES 1: 1.3910/1.3976 High Aug 18 / 50-day EMA  
• PRICE: 1.3840 @ 16:55 BST Aug 24
• SUP 1: 1.3732 Low Aug 21
• SUP 2: 1.3715 76.4% retracement of the May 1 - Jun 24 bull cycle
• SUP 3: 1.3672 Low May 12
• SUP 4: 1.3620 Low May 7

A bear theme in USDCAD remains intact and a fresh short-term cycle low last week once again confirmed an extension of the bear leg that reinforces current conditions. Scope is seen for a deeper retracement of the May 1 - Jun 24 bull leg. 1.3817, 61.8% of the May 1 - Jun 24 downleg, has been breached. This opens the 76.4% level at 1.3715. Key resistance is 1.39763, the 50-day EMA. Short-term gains are considered corrective.   

Monday's US rates/bond options flow included:

• SFRZ6 96.1875/95.50 RR sold at 5.5 in 10k (cov 96.035 48%; sold the call)
• SFRZ6 95.875/95.625 put spread sold at 5.5 in 15k all day
• TUV6 103.375 calls 3.5K given at 0-02
• TUV6 106.00 puts, ~5K trades at 0-02, initially triggered by a seller.

• TYZ6 105.00 puts ~5.2K given at 0-14

   

PENTAGON CHIEF HEGSETH ON IRAN: NOT RULING OUT USING MILITARY FORCE IN STRAIT OF HORMUZ OR ANYWHERE ELSE