USDCAD is holding on to its recent gains. Last week’s gains reinforces the uptrend and maintains the price sequence of higher highs and higher lows. The focus is on 1.3655, the May 26 high. Note that a trendline resistance, drawn from the Oct 13 2022 high, is at 1.3731 and represents an objective further out. Support to watch is 1.3465, the 20-day EMA. A break of this average would signal the start of a correction.
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USDCAD remains in consolidation mode and is trading above key support at 1.3093, the Jul 14 low. Moving average studies continue to highlight a dominant downtrend. A break of 1.3093 would confirm a resumption of the medium-term bear cycle. This would open 1.3084 and 1.3032, Fibonacci projection points. On the upside, clearance of the 50-day EMA, at 1.3288, is required to highlight a possible short-term reversal.
AUDUSD traded sharply lower Friday, extending the reversal from Thursday’s 0.6821 high. The move down reinforces a bearish theme and note that the pair is trading below both the 20- and 50-day EMAs. This signals scope for weakness towards the next key support at 0.6596, the Jun 29 low. On the upside, key short-term resistance has been defined at 0.6821, where a break is required to reinstate a bullish theme.