USD/CAD has escaped from the major down channel after its failure to approach again the downside line. The breakout above the major downtrend line signals an up reversal even if the rate seems undecided now.
The pair moves sideways between 1.3139 and 1.3196 levels. The breakout through one of these levels could decide the short-term direction. A drop below the former lows signal a deeper drop towards the downtrend line and towards the 1.3020.
On the other hand, an increase beyond the former highs, above 1.3200 psychological level validates further upside movement.
- USD/CAD Trading Tips & Conclusion
Buy from above 1.3200 level with a potential upside target at 1.3376 level. You can use 1.3250 and1.3300 as near-term targets.
Sell if USD/CAD drops below the previous lows, below 1.3130 level.
