USDCAD: Trend Line Break Hints at Losses
USDCAD put in a bearish Three Inside Down candlestick pattern below the parity figure and edged through rising trend line support set from the July swing low, hinting a double top may be in the works. Negative RSI divergence reinforces the case for a downside scenario. Initial support lines up at 0.9756 and 0.9694. We maintain a longer-term bullish outlook on the pair expecting gains to resume with the return of risk aversion and will look at the pullback as a buying opportunity.
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