USDCAD – recovery rally risks stall on repeated rejections at daily cloud base barrier
Canadian dollar pulls back from its lowest levels in 2018 at 1.2583/90, posted on Wed / today, after concerns that US will pull out of NAFTA agreement, send loonie sharply down.
USDCAD recovery rally from 1.2355 (05 Jan low) faces strong barriers provided by daily cloud base / 100SMA (1.2584/89) which repeatedly capped recovery rally.
Barriers also lay near Fibo 38.2% of 1.2920/1.2355 fall (1.2570) which reinforces the resistance, where corrective phase from 1.2355 low should be ideally capped, before broader bears off 1.2915 lower platform resume.
Conversely, sustained break into daily cloud would sideline reversal scenario and signal extended correction of 1.2920/1.2355 descend.
Res: 1.2590; 1.2646; 1.2660; 1.2698
Sup: 1.2523; 1.2505; 1.2472; 1.2427