The USDCAD pair extends rally on Monday and broke through strong barrier at 1.2460 (Fibo 61.8% of 1.2590/1.2248 downleg).
Uncertainty over NAFTA talks keeps the greenback bid for extension of Friday’s 1.3% rally, which was accelerated by strong US labor sector data.
Close above 10/20 SMA’s on Friday was bullish signal for extension through 1.2460 barrier and attack at next pivot at 1.2505 (Fibo 38.2% of 1.2920/1.2248 descend).
Daily studies are regaining bullish momentum and indicators are heading north, with daily cloud twisting on Thursday (1.2699) and expected to attract near-term bulls.
Sustained lift above 1.2505 would open next targets at 1.2600 zone (11 Jan lower top and converging 55/100SMA’s), with stronger acceleration capable of travelling to 1.2563 (Fibo 61.8% of 1.2920/1.2248 fall.
Broken 20SMA (1.2413) offers solid support which holds today’s action and the downside being reinforced by thick 4-hr cloud (1.2395/1.2346).
Res: 1.2505; 1.2536; 1.2590; 1.2613
Sup: 1.2413; 1.2395; 1.2346; 1.2362
. Uncertainty over NAFTA talks keeps the greenback bid for extension of Friday's 1.3% rally, which was accelerated by strong US labor sector data. ){kind=link}