USDCAD extends recovery after weak Canadian data
|USDCAD
The pair extends recovery into third straight day on Friday and broke through 100SMA (1.2678) as loonie was hit by weak Canadian data (CPI 0.3% Mar vs 0.4% f/c and 0.6% Feb / core retail sales 0.0% Feb vs 0.3% f/c and 1.0% Jan). Recovery leg of 1.2527 (17 Apr low) extends and pressures falling 20SMA (1.2731), eyeing pivotal barrier at 1.2755 (Fibo 38.2% of 1.3124/1.2527 descend, reinforced by 55SMA). Firm break here is needed to signal stronger correction of 1.3124/1.2527 fall, which could extend towards next key barrier at 1.2846 (daily cloud top). Caution of possible recovery stall as slow stochastic is overbought on daily chart and momentum studies remain weak. Broken 100SMA now acts as initial support, guarding strong support at 1.2621 (converged 200/10SMA's), loss of which will be bearish.
Res: 1.2731; 1.2755; 1.2813; 1.2846
Sup: 1.2678; 1.2621; 1.2585; 1.2545
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