USDCAD TECHS: Fresh Cycle High
- RES 4: 1.4078 2.0% 10-dma envelope
- RES 3: 1.4000 Round number resistance
- RES 2: 1.3946 High Aug 5 and a key resistance
- RES 1: 1.3869 High Oct 24
- PRICE: 1.3852 @ 08:03 BST Oct 25
- SUP 1: 1.3786/3728 Low Oct 18 / 20-day EMA
- SUP 2: 1.3667 50-day EMA
- SUP 3: 1.3611 Low Oct 8
- SUP 4: 1.3567 Low Oct 7
The USDCAD trend outlook remains bullish and the pair traded to a fresh short-term cycle high yesterday. Price has breached 1.3822, 76.4% of the Aug 5 - Sep 25 bear leg. The breach reinforces a bullish theme and opens 1.3946, the Aug 5 high and the next key resistance. Initial firm support to watch lies at 1.3728, the 20-day EMA. A pullback would be considered corrective and allow an overbought condition to unwind.
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MNI: SPAIN AUGUST PPI -1.3% Y/Y; +1.5% M/M
- MNI: SPAIN AUGUST PPI -1.3% Y/Y; +1.5% M/M
USDCAD TECHS: Resumes Its Downtrend
- RES 4: 1.3693 High Aug 19
- RES 3: 1.3647 High Sep 19
- RES 2: 1.3609 50-day EMA
- RES 1: 1.3562 20-day EMA
- PRICE: 1.3434 @ 07:58 BST Sep 25
- SUP 1: 1.3420 Intraday low
- SUP 2: 1.3413 Low Feb 9
- SUP 3: 1.3358 76.4% retracement of the Dec 27 ‘23 - Aug 5 bull run
- SUP 4: 1.3288 Low Jan 5
USDCAD remains in a clear downtrend and yesterday's strong sell-off reinforces this condition. The pair has traded through support at 1.3441, the Aug 28 low. This breach confirms a resumption of the downtrend that started Aug 5. The move down paves the way for an extension towards 1.3358, a Fibonacci retracement. Initial firm resistance is seen at 1.3562, the 20-day EMA. Short-term gains would be considered corrective.
GILTS: Opening calls
Gilt calls: 99.26/99.34 range.
