USDCAD – limited recovery attempts as thickening daily cloud continues to weigh
The USDCAD bounced on Thursday after extension of Wednesday’s sharp bearish acceleration found footstep at 1.2465 (daily Kijun-sen / 50% retracement of 1.2248/1.2687 upleg).
Recovery attempts were so far limited at 1.2520 (broken Fibo 38.2%) and under rising 10SMA which marks first pivotal barrier at 1.2537.
Mixed daily studies (conflicting MA’s / neutral RSI / negative slow stochastic) are lacking clearer direction signal, however, thickening daily cloud and Wednesday’s large bearish candle with long upper shadow, continue to weigh.
Next pivots lay at 1.2550/55 (Fibo 38.2% of 1.2687/1.2465 / daily cloud base) and firm break here would generate fresh bullish signal for extended advance.
Meanwhile, the downside would remain vulnerable while these barriers cap, keeping risk at 1.2465 at 1.2452 (converged 20/30SMA’s), with break here to generate stronger bearish signal.
Res: 1.2520; 1.2555; 1.2576; 1.2602
Sup: 1.2465; 1.2452; 1.2416; 1.2352