Even though the
USDCAD pair started the session trading higher and hit the 1.2540 level, it was
unable to sustain at higher levels and retreated to finish the session at
1.2436, forming a shooting star candlestick pattern on the daily chart. The
candle formed along with an upper Bollinger band crossover on the daily chart
hints at a possibility of a correction in the coming sessions. However, daily
MACD is attempting to stabilize in the positive territory with the RSI also
placed at a higher level, contradicting the above view. Immediate important
support resides at around 1.2382/80, a move back below which might trigger
further weakness. On the bright side, the ability to capture the 1.2500 level
on a daily closing basis would negate any weakness.
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