USD/CAD regained advantageous traction on Tuesday and moved returned nearer to the 1.2550 hurdle.
Mixed technical symptoms on hourly/daily charts warrant warning for aggressive bullish traders.
The 100-hour SMA now will become a sturdy base and have to assist restriction any significant downside.
The USD/CAD pair constructed on the preceding day’s strong rebound from the vicinity of 100-hour SMA and received some follow-through traction thru the Asian session on Tuesday. The momentum pushed the pair returned nearer to mid-1.2500s, or a resistance marked via the 50% Fibonacci stage of the 1.2740-1.2365 latest slide to the lowest degree considering February 2018.
The US greenback was once returned in demand following the in a single day positive feedback with the aid of Fed Chair Jerome Powell and US Treasury Secretary Janet Yellen, reaffirming the upbeat US monetary outlook. Apart from this, a softer tone round crude oil fees undermined the commodity-linked loonie and remained supportive of the USD/CAD pair’s intraday effective move.
Meanwhile, technical warning signs on hourly charts have been gaining tremendous traction and aid potentialities for extra intraday gains. That said, oscillators on the day by day chart – although have been recuperating from the bad territory – are but to verify the bullish outlook and warrant some warning earlier than positioning for any similarly appreciating move.
Hence, any subsequent electricity is greater in all likelihood to confront stiff resistance close to preceding robust support, round the 1.2575 region. The noted are coincides with the 61.8% Fibo. degree and must now act as a key pivotal point. A sustained go past will mark a clean bullish breakout and pave the way for an extension of the ongoing recuperation from multi-year lows.
On the flip side, the 38.2% Fibo. level, round the 1.2515-10 location now looks to defend the on the spot draw back in advance of the key 1.2500 psychological mark. This is intently accompanied via 100-hour SMA, round the 1.2480 area and the 23.6% Fibo. level, close to mid-1.2400s, which if damaged will negate any near-term wonderful bias and on the spot some technical selling.
The USD/CAD pair would possibly then flip inclined and speed up the fall returned to the 1.2400 round-figure mark. The downward trajectory ought to similarly get prolonged and enable bears to mission multi-year lows support, round the 1.2365 area touched final week.