The USDCAD pair eased on Wednesday as the greenback eased from fresh highs posted after US decision on Iran while loonie was boosted by fresh rise in oil prices.
Tuesday’s rally which marked eventual break above two-week 1.2800/1.2915 range stalled just ticks under psychological 1.30 barrier and subsequent pullback cracked strong supports at 1.2880/70 (daily cloud top/rising 10SMA.
Daily techs show mixed signals as RSI and momentum are heading lower while MA’s remain in bullish setup.
Pair’s action at key points 1.2880/70 would provide fresh direction signals. Clear break lower would be negative signal for extension towards next key supports at 1.1817/15 (Fibo 38.2% of 1.2527/1.2997 rally/recent range floor).
Conversely, expectations for renewed attack at 1.30 barrier are expected to stay in play while 10SMA/cloud top hold dips.
Res: 1.2974; 1.3000; 1.3076; 1.3103
Sup: 1.2861; 1.2826; 1.2815; 1.2778
