The pair surged above 1.2800 barrier and hit new over one-week high at 1.2815 on Friday after Canada’s Oct inflation numbers came along with expectations (0.1% vs 0.1 f/c; Core 0.3% vs 0.3% f/c) disappointing many traders who expected higher figures.
Fresh bullish acceleration eventually broke above rising 20SMA (1.2763) after hovering around it in past few sessions and probed through psychological 1.2800 barrier, which limited upside attempts on Wed/Thu.
Rally approached next pivot at 1.2819 (Fibo 61.8% of 1.2914/1.2665 pullback) and close above here would generate bullish signal for fresh upside and possible full retracement of 1.2914/1.2655 corrective phase.
Fresh acceleration higher brings daily techs back into full bullish setup, however, bulls may consolidate before resuming higher as slow stochastic is entering overbought territory. Broken 20SMA is expected to keep the downside protected.
Res: 1.2819; 1.2835; 1.2855; 1.2914
Sup: 1.2789; 1.2763; 1.2734; 1.2713
