Hello traders! USD/CAD started to reverse to the upside after price broke above the key resistance area near 1.3090, along with the downtrend trendline. This was a first bullish sign for the pair and the current corrective wave down could provide an attractive opportunity for buyers.
Right now USD/CAD is rejecting the previous level of resistance which is now the support, along with the 50 Exponential Moving Average and the bottom of the ascending channel. As long as the daily closing prices will remain above the low produced today at 1.3077, the probability of the uptrend continuation will remain very high.
The upside target or the key resistance level is located at 1.3174 and confirmed by two Fibonacci retracement levels, 61.8%, and 261.8%. It also corresponds to the middle trendline of the ascending channel, which means that the resistance could be reached within 3-4 trading days.
Bias: Strongly bullish while daily closing prices above 1.3077
Potential Support Zone: 1.3080 – 1.3100
Potential Targets: 1.3174
Have a profitable trading!