USDCAD – strong bears pressure key supports at 1.2670 zone
USDCAD pair remains under strong pressure on Monday and extending Friday’s strong fall on upbeat Canadian data, pressuring key supports at 1.2670 zone (multiple downside rejections which formed base).
Break below 1.2670 pivot and violation of nearby top of rising daily cloud (1.2649) is needed to confirm double top on daily chart (1.2916/1.2909) and signal fresh extension of steep bear-leg from 1.2909 (30 Nov high).
Daily techs are turning to bearish mode (momentum studies turned negative ; 10/30 bear-cross formed and daily Tenkan-sen / Kijun-sen converged in attempt to form bear-cross) which could be supportive for further weakness.
Sustained break below 1.2670/49 pivots would open way towards targets at 1.2628 and 1.2560 (Fibo 61.8% and 76.4% of 1.2450/1.2916 respectively).
Broken 20SMA (1.2751) is expected to ideally cap upticks.
Res: 1.2726; 1.2751; 1.2790; 1.2836
Sup: 1.2670; 1.2649; 1.2628; 1.2589