In previous posts we noted the bullish break out of USDCAD above 1.2130 and recently we updated our bullish view on USDCAD. Our latest upside target for USDCAD was at 1.23-1.2350, something that was achieved today.
Black line- short-term resistance (broken)
USDCAD has reached today as high as 1.2344. Price has reached the key resistance trend line and this is the time to be cautious. Price exploded higher after the FOMC meeting yesterday. Dollar strength across the board affected USDCAD as well. Being oversold on a weekly basis, as we noted in previous posts, the strong bounce towards 1.2350 was justified and expected. We just waited to get the confirmation reversal signal at 1.2130. The upside potential is huge specially if bulls manage to recapture 1.24 and 1.2650 afterwards. For now, short-term trend remains bullish and we have a big test ahead of us at 1.2350.
