In our last USDCAD analysis we warned bears that a bullish divergence was being noted when price was between 1.3150-1.3170. With price now at 1.3215 and the RSI making higher highs and higher lows, we see that it is more probable for USDCAD to reach 1.33-1.3350 than fall.
Blue lines -bullish divergence
Red line - resistance
USDCAD is moving higher today and we expect price to move closer to the red downward sloping resistance trend line. This trend line is now at 1.3356. However we expect USDCAD to continue its move higher at least towards 1.33. Key short-term support is at 1.3130. Breaking below this support level will increase chances of a move towards 1.3060-1.30. I do not believe it is worth it now to be bearish.
