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Monday, December 17, 2012

$USDCAD Morning Commentary

$USDCAD closed lower due to profit taking on Friday as it consolidates some of the rally off November's low. The low-range close sets the stage for a steady to lower opening when Monday's night session begins trading.

Stochastics and the RSI are overbought but are turning neutral to bearish hinting that a short-term top might be in or is near. Closes below the 20-day moving average crossing at 100.57 would signal that a short-term top has been posted. If March extends the rally off November's low, the reaction high crossing at 102.10 is the next upside target. 

First resistance is Thursday's high crossing at 101.58. 
Second resistance is the reaction high crossing at 102.10. 

First support is the 10-day moving average crossing at 100.90. 
Second support is the 20-day moving average crossing at 100.57.