USD/CAD is breaking very well defined falling wedge in the background and I do expect more upside in the future. Tomorrow is the important day for Canadian dollar due to the Bank of Canada Monetary Policy Report and the FOMC later tomorrow. I see potential for the upside and test of 1.3117.
Yellow rectangle – Resistance and upward target
Falling purple lines – Broken falling wedge
Rising purple line – Expected path
Based on the 4H time-frame, there is bullish divergence that is building for past few days on the MACD oscillator, which is sign that selling power lost momentum. The breakout of the falling wedge is good confirmation for the further upside. Important support level is seen at 1.3040 and resistance at 1.3117.
Watch for buying opportunities on the dips...
