USD/CAD
accelerated to the upside and reached the strongest level since last Friday
at 1.3175, after breaking above yesterday’s highs.
The pair started to
move with an upside bias during the European session. Greenback gained momentum
after the release of US economic data while the loonie weakened amid a retreat
of crude oil prices. The barrel (WTI) dropped from $48.00 to $46.40, losing
almost 3%.
USD/CAD technical outlook
The pair is
breaking an important downtrend line coming from last week highs, signaling an
end to the bearish correction that appears to have found a bottom at 1.3037 (Nov
3 low). In the four hour charts price had risen above key EMAs (including 20, 50
and 200) gaining support for a continuation of the rally.
A decline
below 1.3050, where the 20-day MA is located could open the doors for a bigger
slide, with a possible target around October lows located at 1.2830/40.
