Contributors Technical Analysis USDCAD Extended Rally Pressures 1.25 Barrier, Twisting Daily Cloud Could Attract for...

USDCAD Extended Rally Pressures 1.25 Barrier, Twisting Daily Cloud Could Attract for Further Advance

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

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