As we explained in our previous posts, USDCAD had formed a bullish flag pattern and a break above 1.31 would lead to a move towards 1.3180 and the 61.8% Fibonacci retracement. This target has been reached and as price has broken above the 61.8% we take a look at our next target.
Red horizontal lines - Fibonacci extension targets
Blue horizontal lines - Fibonacci retracements
USDCAD has reached our first target and is now moving above the resistance of the 61.8% level. This could lead to a move towards the first green trend line resistance around 1.3270 where we also find the second Fibonacci extension target. Support is at 1.31-1.3085 and as long as price is above this level, bulls will remain in control of the trend.
