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USD/CAD downside is wide open and eyes the 40 DMA

FXStreet (Guatemala) - USD/CAD is trading at 1.1287, down -0.33% on the day, having posted a daily high at 1.1361 and low at 1.1280.

USD/CAD is moving in tandem with the oil price to some extent and gives up the 1.13 handle with WTI moving back into less negative territory. Spot WTI breached the $78 mark today.

Analysts at TD Securities, from a technical point of view explained that the heavy undertone to price action evident on the daily charts leaves the door open to a deeper push lower in the days or weeks ahead potentially. “Have to think that the stall above 1.14 leaves USD/CAD vulnerable to a test of the bull channel base/40-day MA around 1.1205 currently; below there potentially exposes a retest of the 200-day MA (1.0986). For the moment, we rather think bullish, longer-term trend momentum should help limit losses to the 1.12 zone”.

USD/CAD noteworthy levels

With spot trading at 1.1288, we can see next resistance ahead at 1.1296 (Daily Classic S1) and 1.1328 (Hourly 20 EMA). Support below can be found at 1.1287 (Daily 20 SMA), 1.1263 (Daily Classic S2), 1.1241 (Weekly Classic S1), 1.1210 (Daily Classic S3) and 1.1205 (40 DMA).

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