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Tuesday, December 18, 2012

$USDCAD Morning Commentary

USDCAD closed higher on Monday and is renewing the rally off November's low. The high-range close sets the stage for a steady to higher opening when Tuesday'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 100.67 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 last 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 101.01. 
Second support is the 20-day moving average crossing at 100.67.