6 May 2016
USD/CAD scales through 1.2900 resistance
The USD/CAD pair faded its downward spike to 1.2827 and pierced through 1.2900 handle to scale session high of 1.2930.
The pair, however, has retraced few-pips from those high levels but is comfortably holding above 1.2900 handle. The initial reaction to disappointing US monthly jobs was on the downside, but relatively weak Canadian employment report and persistent weakness in crude oil prices helped the pair to clear the 1.2900 resistance.
From technical perspective, the 1.2895-1.2900 area represented a short-term descending trend-channel resistance, which has now been conquered decisively. Hence, we could possibly witness some follow through buying interest in the pair.
Technical levels to watch
From current levels, the pair clearly seems to head 1.2990 (April 18 high), nearing 1.3000 psychological mark. Momentum beyond 1.3000 mark could get extended in the near-term towards its next major resistance near 1.3135-40 area, marking April month's daily closing high levels.
On the downside, the descending trend-channel break-point near 1.2900 handle now seems to protect immediate downside. Any subsequent weakness below 1.2900 level now seems to be limited at 1.2850 horizontal support.
The pair, however, has retraced few-pips from those high levels but is comfortably holding above 1.2900 handle. The initial reaction to disappointing US monthly jobs was on the downside, but relatively weak Canadian employment report and persistent weakness in crude oil prices helped the pair to clear the 1.2900 resistance.
From technical perspective, the 1.2895-1.2900 area represented a short-term descending trend-channel resistance, which has now been conquered decisively. Hence, we could possibly witness some follow through buying interest in the pair.
Technical levels to watch
From current levels, the pair clearly seems to head 1.2990 (April 18 high), nearing 1.3000 psychological mark. Momentum beyond 1.3000 mark could get extended in the near-term towards its next major resistance near 1.3135-40 area, marking April month's daily closing high levels.
On the downside, the descending trend-channel break-point near 1.2900 handle now seems to protect immediate downside. Any subsequent weakness below 1.2900 level now seems to be limited at 1.2850 horizontal support.