The USDCAD pair surged on better than expected US data )jobless claims fell to 260K vs forecast at 265K while trade gap in August narrowed to $42.4B, compared to forecasted $42.7B and $43.6B gap in July). At the same time weaker than expected Canadian trade balance data for August (trade gap widened to C$3.4B compared to forecasted C$2.6B gap) pressured loonie.
Fresh bullish acceleration cracked Tuesday’s recovery peak at 1.2538 and looks for extension of larger bull-leg from 1.2061 (08 Sep low) on sustained break.
Shallow correction from 1.2638 was contained by 55SMA which is turning into sideways mode, with rising 10SMA approaching and on track to form bull-cross.
Fresh rally today broke again above 1.2504 (Fibo 61.8% of 1.2778/1.2061), looking for bullish signal on eventual close above after four failures in past few days.
Bulls are now looking for test of 1.2580 (base of falling daily cloud) which marks strong barrier.
Res: 1.2580; 1.2608; 1.2662; 1.2690
Sup: 1.2504; 1.2461; 1.2443; 1.2419