As we mentioned in our previous USDCAD post, price has formed a downward sloping or bullish wedge pattern. Price is touching the upper and lower wedge boundaries and we expect soon to see a break out as price is running out of space inside the pattern.
USDCAD is moving higher towards the upper wedge boundary at 1.26. A rejection there will push price back towards the lower wedge pattern boundary around 1.24-1.2375 area. A break out of the wedge boundary will open the way for a move towards 1.35-1.36. Once the wedge pattern is broken upwards, next key resistance is at 1.2740. My preferred strategy would be to be patient and wait for price to break above the upper wedge boundary.
