USDCAD – 20SMA continues to cap recovery despite strong US and downbeat Canadian data
The pair showed limited reaction on better than expected US weekly jobless claims (215K vs 230K f/c) and downbeat Canadian GDP data (m/m Jan GDP -0.1% vs 0.1% f/c and annualized -0.3% vs 2.9% f/c).
Extension of recovery rally from 1.2814 (low of pullback from 1.3124), stays capped by 20SMA / Fibo 38.2% of 1.3124/1.2814 for the second day, despite bullishly aligned daily studies.
Moving averages (10/20/30) are in mixed setup but bullish momentum is building.
Repeated rejection under 20SMA would be initial negative signal, which requires confirmation on return below rising 30SMA (1.2852) for retest of key n/t support at 1.2814 (Tuesday’s low).
Bullish scenario needs close above 20SMA and extension above 10SMA (1.2952) to signal further retracement of 1.3124/1.2814 pullback.
Res: 1.2933; 1.2952; 1.2970; 1.3000
Sup: 1.2887; 1.2852; 1.2814; 1.2792