Ransquawk

During the past week, the USDCAD currency pair has risen above key resistance at 1.2900. However, as can be seen in the chart below, when closing on Friday, all profits were given back and finally the week ended at 1.2815. The result of the price action discussed above is the pin bar formation on key resistance. It suggests a reversal, not necessarily a trend change, but may herald a correction to the nearest support.

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In the short term (4-hour chart below), you can look for sell opportunities. Resistance in this case is still a zone around 1.2900, and the area slightly lower, close to 1.2866. Additionally, almost at 1.2900, the average daily range from the last 14 days is falling. As for a potential target for declines is in the support area at 1.2665.

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