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In opinion of Axel Rudolph, Senior Analyst at Commerzbank, the pair could slip back to the 1.2920 region, where it is expected to consolidate ahead of another bullish attempt.

Key Quotes

“USD/CAD continues to come off its June peak at 1.3386 and is sliding towards the breached 2016-18 downtrend line and the 2018 support line at 1.2922/17. There the currency pair may well stabilize before another up leg is made”.

“Longer term we still believe that USD/CAD is aiming for the 1.3532/97 November and December 2016 as well as the March 2017 highs. Further up sits the May 2017 peak at 1.3791″.

“Over the next few days further sideways trading with a slightly bearish bias remains to be seen, however”.

“Were support at 1.2922/17 to give way on a daily chart closing basis, the 50% retracement and 200 day moving average at 1.2820/18 could be reached”.