USD/CAD staged a pullback after facing resistance near graphical levels of 1.2950/1.3030 consisting of last December peak. Key support runs at the 200-day moving average (DMA) around the 1.2500 level. While holding above here, the pair is set to enjoy a rebound, according to economists at Société Générale.
See – BoC Preview: Forecasts from eight major banks, no policy change expected
Overcoming 1.2950/1.3030 is essential to see an extended uptrend
“USD/CAD has so far defended the daily Ichimoku cloud and the 200-DMA at 1.2500. Only a break below will mean a deeper down move.”
“Holding above 1.2500, the pair could rebound towards 1.2810 with the next hurdle at the recent peak of 1.2950/1.3030. Overcoming this will be essential for an extended uptrend.”