Thursday, 17 May 2018

USD/CAD Bulls are eyeing 1.2800


USD/CAD bounced from the daily lows around 1.2750 and is advancing towards 1.2800. The US bulls resumed their march to the upside, supported by the rising US yields, while the Canadian dollar  gave away gains after the backing of WTI latest highs.
Technically speaking the short-term outlook remains neutral to bullish. On the four hour time frame the price is developing between its flat SMAs. Stochastic is recovering from extreme oversold area and has turned to north although is yet below 20. RSI is showing good upward momentum and is nearing its mid-line.
However to resume the bullish trend the pair will need to retake the resistance provided by the 100-day SMA at 1.2840 and then to fight the 50% Fibonacci retracement of 2017 bearish run at 1.2930. Further on doors are opened for testing the May’s high at 1.2996. Looking to the downside first support is offered by the 61.8% Fibo of same retracement at  1.2730 and next one is seen at 1.2650.


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