The long-term weekly chart of the USD/CAD points to significant gains as things stand. The key technical points to consider going forward:
- Bullish breakout above key 1.3295 resistance, now support, suggest path of least resistance to the upside
- Reclaiming the 55-week moving average is important – there was significant follow-through on previous occasions when the USD/CAD moved above this average
- This year’s earlier sell-off came to a halt between the long-term 38.2% and 50.0% retracement levels. This relatively shallow pullback is usually a very bullish sign
- Potential bullish objectives: 1.3655 (old support), 1.3840 (61.8% Fib) and 1.4065 (last weekly up candle prior to down move)
- Short-term bias bearish below 1.3295 on weekly closing basis. If so, 1.30 or lower could be the next stop
Have a good weekend!
Source: eSignal and FOREX.com