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USDCAD: Downside Prevails

17 October 2016

Technical Outlook:
USD/CAD Intraday: Under pressure. The pair has been capped by a declining trend line and remains under pressure. Meanwhile, the 20-period moving average stays below the 50-period one, and the relative strength index stays below 50 and lacks upward momentum. As long as 1.3180 is not broken above, a break below 1.3100 is likely. Alternatively, a stand above 1.3180 would allow for a bounce toward 1.3215 and 1.3260 in extension.

Recommendation:
The downside penetration of 1.3220 will call for a slide towards  and 1.3135
Support Levels:
S1 – 1.3135
S2 – 1.3100
S3 - 1.3065

Alternative Scenario:
The upside penetration of 1.3220 will call for a slide towards 1.3260 and 1.3300
Resistance Levels: 
R1 – 1.3260
R2 – 1.3300
R3 - 1.3345