USDCAD Outlook: Loonie looks for extension of strong advance on signals of NAFTA talks continuation
|USDCAD
The USDCAD pair holds in narrow consolidation in early Wednesday's trading, following strong bearish acceleration in late Tuesday after Canada said was ready to make a concession to the US and continue talks about new NAFTA agreement. The pair was down 0.75% for the day, in the biggest one-day fall since 25 July and hit one-week low at 1.3042, where rising 100SMA contained fall. Bearish signal was generated on break and close below thin daily cloud and return below bear-channel upper trendline. Weakening momentum on daily chart keeps the downside vulnerable, however, daily MA's in mixed setup and flat RSI provide no clear direction signal. Near-term outlook is expected to remain negative while the price stays below daily cloud (spanned between 1.3077 and 1.3102), reinforced by falling 55SMA (1.3093). Break below 100SMA would open way towards next pivotal supports at 1.3016 (Fibo 61.8% of 1.2887/1.3226 ascend) and psychological 1.30 support. Conversely, close above 55SMA / daily cloud would ease bearish pressure and signal higher low.
Res: 1.3077; 1.3102; 1.3146; 1.3174
Sup: 1.3039; 1.3016; 1.3000; 1.2962
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