The USD/CAD pair surged through the psychological 1.3000
handle today and the rally surpassed the late March high at 1.3046. The bulls
reached daily high at 1.3066 but retreated to currently trade at 1.3010 however
adding 100 around pips for the day.
The strong bullish mode came after the gloomy Canada’s Q1 labor productivity data weakening the Canadian dollar while better than expected figures on US ISM's non-manufacturing PMI data fuelled the greenback.
The strong bullish mode came after the gloomy Canada’s Q1 labor productivity data weakening the Canadian dollar while better than expected figures on US ISM's non-manufacturing PMI data fuelled the greenback.
Technically speaking the short term outlook remains neutral to bullish. On the
four hour time frame the price is developing well above its moving averages
with all of them aiming north. RSI and stochastic are showing strong bullish
momentum although both are located slightly above their mid-lines.
A daily close above the late March’s high at 1.3046 will
bring additional strength for bulls to test the 38.2% Fibonacci retracement of
the 2017 bearish run at 1.3127. On the other hand the profit-taking provoked
by the latest rally might lead USD/CAD lower. In case of closing below 1.3000
barrier, which is providing first support now, deeper decline is expected
towards 1.2910 – the 50% of above mentioned Fibo.
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