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USD/CAD Technical Outlook: Trying to Bottom at Long-term Support

 USD/CAD has been testing an enormous area of support that dates back to the good Financial Crisis, with the extent not that obvious sometimes given it runs through tons of price action over the years. But nevertheless the 13000 line has been big, with it acting as support now 3 times going back to last year.

There is a trend-line (lower parallel tied to a top-side trend-line extending over the 2017/20 highs) that's also in confluence with the 13000 level. This makes for an honest floor that if maintained at the very least keeps the outlook neutral, but if broken could lead on to a large leg lower as strong support isn’t to be found for a few distance below.

It is possible that USD/CAD is trying to carve a higher-low from the September 1 low, but some more work is required to show the near-term favorable for taking long-side bets. With a touch more strength above 13259 and an indication that price wants to carry , then we could look to the September high at 13418 because the next level of resistance. this is able to indeed be an enormous test.

Should price sag some more then shorts will remain on top of things , but with the 13000 level so accessible it doesn’t bring the foremost appealing risk/reward set-up to be an aggressive seller. an opportunity through the September low, though, would be reason to dial it up in trying to find a stronger move to the downside.