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FxWirePro: USD/ CAD drop accelerates, expect a bigger drop

• USD/CAD extends its losing streak  on Tuesday as Canadian dollar gained from a weakened U.S. dollar and increasing oil prices.

• Oil prices have risen due to escalating conflict between Israel and Hezbollah, highlighted by a major missile exchange following the death of a Hezbollah commander.

• At GMT 19:52, the pair was trading down  0.23 percent  at 1.3454 ,its lowest level since 31st July 2023.

• Technical signals are bearish as RSI is at 23, daily momentum studies  5, 9 and 10 DMAs are trending down.
 
•  Immediate resistance is located at 1.3509 (38.2%fib), any close above will push the pair towards 1.3553 (50%fib).

• Support is seen at 1.3450(23.6%fib) and break below could take the pair towards 1.3414(Lower BB).

Recommendation: Good to sell  around 1.3460, with stop loss of 1.3520 and target price of 1.3380

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