This pair was sent lower last week when it collided with the crossing of the resistance trend lines at 1.30657. Price fell to the area of the supporting 200 period MAs in a repeat of the move from the previous week. The rebound higher failed above 1.30000 and has since rebounded from its 100 period MA at 1.29200. The ongoing battle of wills between US President Trump and Canada is impacting the pair but with no clear winner price is largely range bound. Resistance is forming a zone from 1.30000 to 1.30704. A breakout higher targets the March high at 1.31241 with higher targets at 1.33000 and 1.35000.
Support for the pair comes at the 200 period moving average at 1.28835 followed by the series of higher lows at 1.28600, 1.28200 and 1.27417. A drop under the 1.27143 support level can lead to a more bearish switch in sentiment for the pair with a retest of the April low on the cards at the 1.25300 level. Further moves lower can target support at 1.24500 where rising trend line support is expected to reach should a moderate selloff occur this month.
