USDCAD remains tall after recent surge but bulls show initial signs of stall
The USDCAD holds high levels on Wednesday and trading above 1.25 handle, after strong rally last Fri/Mon which stalled at 1.2566 on Tuesday.
Subsequent dip was so far shallow and found footstep just under 1.25, with fresh bullish momentum building on daily chart and 10/20SMA’s in bullish setup, continuing to support.
Thick hourly cloud (spanned between 1.2515 and 1.2433) underpins near-term action and keeps the downside protected for now.
On the other side, overbought slow stochastic on daily chart and converged 55/10 in attempt to form bear-cross, weigh and keep the downside at risk.
Break below two-day base at 1.2490 will be initial bearish signal for extension towards pivotal 1.2445 support (Fibo 38.2% of 1.2248/1.2566 rally), loss of which would signal reversal.
On the other side, lift above Tuesday’s spike high at 1.2566 will be bullish signal, as daily cloud twists tomorrow (1.2699) and could attract for further advance.
Res: 1.2544; 1.2566; 1.2603; 1.2663
Sup: 1.2490; 1.2445; 1.2415; 1.2390