Forex: USD/CAD retraces from highs, around 1.0025/30

FXstreet.com (Barcelona) - The Canadian dollar is giving away early gains after climbing to the proximities of 1.0060, currently trading back to the 1.0025/20 region.

"The pattern of trade on the daily chart over the past few days has formed a bearish "evening star" top/reversal and losses so far have barely retraced any of the USD's rally from the low 0.98 area. Despite these negative developments, we rather think that scope for USD weakness is limited (mid/upper 0.99s). Trend momentum studies remain USD-constructive and long-term price signals are bullish as we move into month-end. Short-term weakness should give way to longer-term USD gains", remarks the research team at TD Securities.

As of writing, the pair is up 0.20% at 1.0029 and a breakout of 1.0071 (Upper Bollinger) would open the door to 1.0101 (high Jan.25) and then 1.0106 (high Jul.27).
On the flip side, support levels line up at 1.0010 (hourly high/low Jan.24) followed by 0.9987 (MA200d) and then 0.9981 (MA10d).