[FXJourney]

Key Themes:

�� “Verbal intervention”by the Bank of Canada may create periods of CAD weakness
�� However, a long-term downtrend remains in place for USD/CAD
�� The 1.1500-1.1700 area is likely to serve as a ceiling in this regard

To buy USD/CAD

�� Use pullbacks to support levels at 1.0323, 1.0005 and 0.9713 as a buying opportunity
�� Reduce exposure on a break above key resistance at 1.1694 (stop loss level)
�� Monitor equity markets (risk aversion) for directional bias and possible trend changes

To sell USD/CAD

�� Use rallies to resistance at 1.0960, 1.1123 and 1.1534 as a selling opportunity
�� Reduce exposure on a break below support at 1.0323 (stop loss level)
�� Long-term downtrend in place drives hedging behavior