After a swift breakdown below the key 1.0800 support/resistance level, price action on USD/CAD, a daily chart of which is shown, has pulled back up to approach a re-test of the breakout region. 1.0800 now serves tentatively as resistance for the pair. A breakdown continuation, which would also continue the current prevailing downtrend, would be confirmed only on a breakdown below 1.0630, which represents the lowest low after breakdown, as well as a 10-month low for the pair. In this event, immediate support should be found around the 1.0550 price region. Further below is the key 1.0300 support target.
- James Chen, CTA, CMT
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