USD/CAD Unable to Clear 1.2600 Immediate Hurdle
The USD/CAD
pair has managed to register a minor recovery from day's through of
1.2528 but seems to face difficulty in moving back above 1.2600 handle.
Following
the release of US Q1 GDP data, which fell short of expectations, the
pair witnessed a minor bounce from lower levels. The pair has been
falling relentlessly since it touched multi-year highs in Jan., hitting
fresh lows and adding on to YTD loss of over 14%. The downward momentum
seems strong enough to further drag the pair, but daily RSI seems to
drift towards a near-term oversold conditions.
Technical levels to watch
The
pair's recovery seems to confront resistance near 1.2600 mark, which if
cleared is followed by resistance near 1.2650 and 1.2700 levels. Only a
sustained strength back above 1.2700 round figure would now set the
stage for further near-term recovery for the pair, possibly towards its
previous strong support now turned resistance near 1.2850-60 area.
Meanwhile
on the downside, resumption of weakening trend might find some support
near 1.2500 psychological mark. Any follow through selling pressure now
seems to aggravate the weakness towards its next round figure mark
support near 1.2400 region.
