Thursday, 22 February 2018

USD/CAD Breaks above 1.27


Since the beginning of the week USD/CAD is gaining upside strength and today the pair advanced much farther to mark new fresh 2018 high at 1.2757. The hawking FOMC minutes yesterday boosted the greenback while the Canadian neighbour suffered from worst than expected retails sales figures.
On the four hour time frame the price is developing well above its bullish 20-day and 100-day SMAs and currently is trading at the 38.2% Fibonacci retracement of  the 2017 bearish run.
RSI is consolidating around its 70, while stochastic
warns us to be cautious because has retreated from its extreme overbought readings and and is showing strong bearish momentum although is located around its 80.
To resume the uptrend for a longer term bulls should make a decisive break through the 50% of same Fibo at 1.2930. Until then the downside will be protected initially by the 23.6% Fibo at 1.2470 followed by the yearly low at 1.2240.




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