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Hugo in HTO Trading,

USDCAD: In a potential rising wedge

Since the start of the year the currency lost more than 6.0% although last week only fell 0.16% and is in a potential phase change, switching from a recovery to a bearish phase.

Last week the USDCAD tried to rally but found enough resistance to reverse and give back to the market all its gains, closing at the low of the day, however managed to close within the previous week range, which suggests being slightly on the bearish side of neutral.

The stochastic is showing a weak bearish momentum although is below the 50 mid line.

Expecting a downward move to a weekly support at 1.2834 (scenario 1) or even down to 1.2605 (scenario 2) on a break below Fridays close at 1.2983.