First attempt fails after price hits a high of 1.3309 then backs off
Price climbed above the key hourly moving averages in Asian trading today and weaker risk sentiment is only helping to fuel a move higher on the day. Oil is trading lower by 0.7% and that’s also helping to add a bit of pressure on the loonie.
Despite buyers establishing a more bullish near-term bias, price is now running into resistance from the 1.3300 handle with offers lying around the region as well. The 14 January high @ 1.3298 also helps to act as a resistance level for sellers to lean on.
Looking at the daily chart, price is also encountering daily resistance from the July high @ 1.3290 with further resistance seen around 1.3320-27. But if anything else, given the period of consolidation we saw earlier and with a focus towards softer risk sentiment, a break of the 1.3300 handle will be a good platform for buyers to build on in the coming sessions.
If price manages to crack above 1.3327, that’d be an even better signal for further upside extension. For now though, buyers are in-charge in the near-term but further upside isn’t really a home run just yet as the 1.3300 handle keeps a lid on price action so far today.