3 May 2016
USD/CAD recovers sharply, eyeing 1.2600 mark
The USD/CAD pair witnessed a sharp upsurge in past few hours and is now trading at day's peak near 1.2580 level.
As crude oil prices continue to slide, the USD/CAD pair witnessed a sharp recovery from early European session lows of 1.2461. Moreover, daily RSI reading was also indicating towards near-term oversold conditions, warranting some relief rally in the near-term.
The pair has now moved within striking distance of its immediate resistance near 1.2600 round figure mark. A clear break-through this immediate resistance would open room for further short-covering rally.
Technical levels to watch
A sustained move above 1.2600 round figure mark seems to extend the recovery immediately towards 1.2655-60 horizontal resistance, which if conquered sets the stage for continuation of the near-term recovery trend, even beyond 1.2700 mark, towards its next major resistance near 1.2745-50 area.
On the downside, 1.2550 level now seems to protect immediate downside. Failure to hold this immediate support has the potential to drag the pair back towards day's through support near 1.2460-50 zone.
As crude oil prices continue to slide, the USD/CAD pair witnessed a sharp recovery from early European session lows of 1.2461. Moreover, daily RSI reading was also indicating towards near-term oversold conditions, warranting some relief rally in the near-term.
The pair has now moved within striking distance of its immediate resistance near 1.2600 round figure mark. A clear break-through this immediate resistance would open room for further short-covering rally.
Technical levels to watch
A sustained move above 1.2600 round figure mark seems to extend the recovery immediately towards 1.2655-60 horizontal resistance, which if conquered sets the stage for continuation of the near-term recovery trend, even beyond 1.2700 mark, towards its next major resistance near 1.2745-50 area.
On the downside, 1.2550 level now seems to protect immediate downside. Failure to hold this immediate support has the potential to drag the pair back towards day's through support near 1.2460-50 zone.