USDCAD – fresh rally above daily cloud sidelines downside risk

The USDCAD pair bounces towards strong barrier at 1.2706 (falling 200SMA) on Monday after corrective dips were repeatedly rejected at 1.2610 zone and penetration of daily cloud was so far short-lived.
The pair regains traction after bearish signal was generated on Friday’s strong close in red which completed Doji reversal pattern on daily chart, but daily cloud managed to contain dips.
Friday’s close marginally above daily cloud top (1.2637) after dip to 1.2610 and similar scenario seen today, suggest that corrective action from last Thursday’s spike high at 1.2757 might be over. Today’s repeated close above daily cloud would be another bullish signal which would support scenario, as continuous uncertainty over NAFTA agreement remains supportive for the greenback.
Break and close above 200SMA will be bullish signal for extension of bull-leg from 1.2248 (31 Jan low) which has so far retraced nearly 76.4% of 1.2920/1.2248 descend.

Res: 1.2706; 1.2725; 1.2761; 1.2800
Sup: 1.2663; 1.2627; 1.2603; 1.2567