Loonie rebounds from 100-hour SMA

In line with expectations, the currency exchange rate has left a falling wedge formation in the upward direction, breaking though the 20- and 55-hour SMAs. However, this breakout was not strong enough to bypass the last resistance barrier set up by the 100-hour SMA near 1.2645. Accordingly, the Loonie made a u-turn and began to slide downwards. The closest support barrier is located far away and is made from the weekly S1 at 1.2546 and the monthly S2 at 1.2552. In contrast, the northern side becomes gradually reinforced by the above 20- and 55-hour SMAs. For this reason, the further fall of the rate seems a more appropriate scenario. In addition, it is unlikely that a release of US jobless claims or the Philly Manufacturing Index can shake this pair significantly.