Diverging daily & weekly studies (RSI & MACD) have supported the latest recovery off 1.0223, just above obvious support at 1.0203 (2009 low - 15 Oct). Clearing the falling 20-day MA on Wednesday has stabilized the outlook and could mark last week's low as the second point of a 3-month double bottom. In the meantime, 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. Clearing it would expose 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).
