USD/CAD up to 200 dma on strong rally

After trading heavily through last Friday there has been a strong turnaround on USD/CAD.

USD/CAD rallied to the 200 dma at 1.3124 from 1.2822. "Given the broader sideways chop in the market in recent weeks (and still neutral trend oscillators), we are not getting too carried away," explained analysts at Scotiabank, "But the scale and pattern of the USD’s rebound this week fits much more neatly with our broader USD-bullish perspective than last week’s drop."

Fed's Brainard advises prudence in the removal of policy accommodation

USD/CAD levels

Spot is presently trading at 1.3041, and next resistance can be seen at 1.3047 (Daily Open), 1.3050 (Weekly High), 1.3054 (Yesterday's High), 1.3069 (Hourly 20 EMA) and 1.3099 (Daily Classic R1). "The USD has reacted positively to the test of trend channel support and this constitutes a strong (bullish) rejection of the low 1.28s for us. A close back above the 40-day MA should at least tilt the balance of near-term risks back towards a test of 1.3200/50," explained the analysts at Scotiabank. Support below can be found at 1.3034 (Daily Low), 1.3005 (Daily Classic PP), 1.2985 (Hourly 200 SMA), 1.2977 (Daily 20 SMA) and 1.2976 (Weekly Classic PP).  Regarding candlestick formations, we can see Dark Cloud Cover formation on the 4-hour.

The big bluff in the era of Central Bank monetary socialism