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On the other hand, the currency pair is forming a falling wedge, which is a reversal pattern, and two thirds of open positions are short. Accordingly, we should wait for a break-out from the pattern before making a near-term forecast. If CAD/CAD closes above 0.72, the focus will shift to the December 10 high at 0.73, while a dip through 0.7120 will highly likely lead to a decline down to 0.6970, the lowest level since this year's August.
© Dukascopy Bank SA