USDCAD – extended recovery pressures daily cloud top
|The pair remains firmly in green for the fourth straight day and hit new recovery high at 1.2840 (the highest since 04 Apr).
Fresh extension higher on Monday marked over 50% retracement of 1.3124/1.2527 bear-leg) and pressures key barrier at 1.2875 (top of widening daily cloud).
Canadian dollar was hit by downbeat data on Friday, while the greenback received additional support from better than expected US existing home sales on Monday.
Daily MA’s turned to bullish setup while momentum is breaking into positive territory, however, strongly overbought slow stochastic on daily chart warns that bulls may hesitate at daily cloud top.
Corrective dips could be seen as positioning for fresh upside and should be ideally contained by 20SMA (1.2732).
Firm break through cloud top at 1.2875 and Fibo 61.8% of 1.3124/1.2527 at 1.2896, would spark fresh acceleration higher and expose psychological 1.30 barrier.
Res: 1.2875; 1.2896; 1.2943; 1.3000
Sup: 1.2813; 1.2761; 1.2732; 1.2678
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