Recovery after strong fall faces headwinds from 10SMA
The USDCAD bounced on Monday, recovering so far nearly a half of strong fall on Friday (the pair was down nearly 1%), when the greenback fell across the board.
Strong bearish acceleration was repeatedly contained by the base of rising daily cloud (1.3211), with support being reinforced by 100SMA (1.3196).
Rally on profit-taking after bears faced strong headwinds is regaining momentum , but needs clear break above 10SMA (1.3287) to sideline existing downside risk, as daily techs are still bearishly aligned.
Failure to clear 10SMA would risk retest of daily cloud base / 100SMA and double-bottom at 1.3180 (9/11 Jan lows) and potential extension towards rising 200SMA (1.3112).
Close above 10SMA would ease bearish pressure and expose pivotal barriers at 1.3326 (20SMA which formed bear-cross with 55SMA) and 1.3365/74 (Fibo 38.2% of 1.3664/1.3180 / 24 Jan correction high).
Res: 1.3287; 1.3326; 1.3374; 1.3393
Sup: 1.3211; 1.3196; 1.3180; 1.3112