Canadian Dollar Breaks 1.1800

Canadian dollar bulls once again managed to push the US dollar counterparts below the 1.1800 handle as the tug-of-war between the neighbors continued with the price action remaining confined to a narrow trading range. As the greenback longs manage to take back the control of the pair, the next move above the 1.1800 figure will most likely see US dollar longs take on 1.1862, a level marked by the 23.6 Fib of the 1.2730-1.1592 CAD rally, which is further reinforced by the 50-day SMA at 1.1836. A sustained momentum the upside will most likely see the greenback take on the Loonie defenses around 1.2028, a 38.2 Fib of the 1.2730-1.1592 CAD rally. Indicators are diverging with momentum indicator above the zero line while negative MACD is sloping upward toward the zero line; with neutral oscillators giving either side enough room to maneuver.

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