USD/CAD Unable to Clear 1.2600 Immediate Hurdle
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.