Loonie strengthens on positive data but advance was so far limited
The pair eased on Thursday, remaining under for-day rally’s high at 1.2789, as loonies got boosted by better than expected Canadian data which offset negative impact from lower oil prices.
Today’s dip to 1.2742 was contained by falling daily Tenkan-sen which marks pivotal support and sustained break lower would weaken near-term structure and risk deeper correction of 1.2665/1.2789 upleg.
Daily techs are giving mixed signals and require break below Tenkan-sen for bearish scenario (extension towards next pivot at 1.2700 zone or bounce above 1.2789 to generate bullish signal).
Meantime, dip-buying remains favored near-term scenario while dips are limited by Tenkan-sen line.
Res: 1.2777; 1.2789; 1.2819; 1.2835
Sup: 1.2742; 1.2712; 1.2695; 1.2665