USDCAD TECHS: Continues To Appreciate

• 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: 1.3921/1.3971 20- and 50-day EMA values  
• PRICE: 1.3839 @ 17:57 BST Aug 25
• 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 confirmed an extension of the bear leg and this reinforces current conditions. The latest bounce appears corrective. Key resistance to monitor is 1.3971, the 50-day EMA. 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.   

European bond futures rally late after a Reuters exclusive is published: "ECB set for September rate hike with no appetite to signal more, sources say". A 25bp September ECB hike had already been largely priced in but the sources piece questions "appetite" for the 1+ hike priced beyond that.

• From Reuters: "European Central Bank policymakers are ready to raise interest rates at their next meeting in September to contain the side-effects of the Iran war but they have little appetite to signal further tightening after that, three sources told Reuters."

Large Blocks posted after the bell at 1514:04ET:

• -22,316 USU6 110-08, post time bid
• +10,040 UXYZ6 110-16, through 110-15 post time offer
• +13,385 WNZ6 111-12, post time offer