USDCAD – bulls extend above daily cloud, eye falling 200SMA
The pair extends strong rally from 1.2450 (16 Feb higher low) into fourth straight day and heads towards target at 1.2687 (09 Feb spike high) after breaking through pivotal barrier at 1.2663 (Fibo 61.8% of 1.2920/1.2248 descend.
Close above 1.2663 Fibo barrier will be the second strong bullish signal after bulls surged and close above thick daily cloud on Tuesday.
Further advance faces another significant obstacle at 1.2719 (falling 200SMA), break of which is needed to turn daily MA into full bullish setup and generate another positive signal.
Firmly bullish daily techs are supportive, but bulls may take a breather before break through 1.2687/1.2719 pivots, as negative near-term signal is developing on overbought slow stochastic.
Narrow consolidation or mild correction is seen as likely scenario, with broken 100SMA (1.2622) to ideally contain dips.
Res: 1.2687; 1.2719; 1.2761; 1.2800
Sup: 1.2663; 1.2622; 1.2575; 1.2555