USDCAD – fresh bulls look for break above daily cloud top

Slobodan Drvenica Windsor Brokers

USDCAD

The US dollar rallied against its Canadian counterpart on Monday and broke above daily Tenkan-sen which capped Friday's action and was acting as initial resistance at 1.2515.
The pair is establishing in fresh direction after recovery from last week's low at 1.2432 stalled on Friday, when the action showed strong indecision, ending in long-legged Doji.
Monday's rally cracked barrier at 1.2534 (Fibo 61.8% of 1.2597/1.2432 pullback) and is approaching another pivotal barrier at 1.2552, provided by top of falling thick daily cloud.
Bulls need close above cloud to confirm an end of corrective phase from 1.2597 (06 Oct high) and open way for full retracement of 1.2597/1.2432 correction.
Daily techs in bullish setup are supportive for further advance, with broken Tenkan-sen (1.2515) and 10 SMA (1.2503) marking solid supports which should keep the downside protected and guard lower pivot at 1.2465 (55SMA/Monday's low).

Res: 1.2544; 1.2552; 1.2597; 1.2636
Sup: 1.2515; 1.2503; 1.2465; 1.2446

Author

Slobodan Drvenica

Windsor Brokers

Industry veteran with over 22 years’ experience, Slobodan Drvenica joined Windsor Brokers in 1995 when he was an active trader for more than 10 years, managing the trading desk and own account departments.

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