FXstreet.com (Barcelona) - Dollar rally from 1.0245 low on Monday and Tuesday has extended on Friday more than 300 pips higher, with the Dollar reaching a fresh 3-week high at 1.0570, to find resistance at the 10-day SMA.
At current levels the Dollar faces important resistance levels, according to Peter Ruud, technical analyst at Informa Global Markets: bulls seek a retest of 1.0583 (30 Dec high), near the stubborn 20-week MA. As mentioned last week, the USD/CAD's 20-week MA has capped (on a closing basis) recovery attempts since late November 2009.
In case of breaking higher, Ruud observes the possibility of further rally towards 1.0750/1.0754, while, on the downside key support lies at 1.0343: Clearing it (20-week MA) would open the way to the 1.0750/1.0754 pivot (17 Dec/27 Nov lows). A daily close below the rising 10-day MA (now at 1.0343), however, would threaten the recovery structure and could possibly reopen 1.0223/1.0247 (14/19 Jan lows).