The pair accelerated sharply higher as the greenback was strongly boosted by upbeat US data.
US new home sales unexpectedly rose in October (6.2% / 685K vs -6.0% / 625K forecast) hitting the highest level since October 2007.
Fresh rally moves away from dangerous zone at 1.2665/70 (lows of 10 Nov / 23 Nov) which mark the breakpoint for bears from 1.2916 (27 Oct high).
Higher base is forming here but break above next strong barriers at 1.2750 zone (4-hr cloud base / converging 10/20SMA’s) is needed to confirm and open way for further recovery.
Further recovery would then open next pivot at 1.2783 (4-hr cloud top).
Lower oil prices would be also supportive for further weakness of the loonie.
Conversely, recovery rejection under 10/20SMA’s would signal extended consolidation and keep the downside at risk.
Res: 1.2750; 1.2761; 1.2791; 1.2820
Sup: 1.2680; 1.2665; 1.2628; 1.2598
