Strategy: Flat
As we initially suggested two weeks ago, USDCAD has broken lower out of a Triangle consolidation pattern to meet horizontal support at 1.0177. A Hammer candlestick at this juncture hints that a rebound may be ahead, although confirmation is needed on the close of the current bar. Initial resistance lines up at 1.0503, the triangle’s lower boundary, while renewed selling threatens a return to parity. On balance, positioning does not offer an attractive trade setup and we will remain on sidelines for the time being.
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