Wednesday, 6 July 2016

USD/CAD: Possible break out of consolidation

Lately the USD/CAD pair is seen in consolidation, but this period might come to an end in case US Dollar’s power resume. This may lead to strong move to the upside, even above 38.2 % Fibonacci level at 1.3303, confirmed by the trendline drawn off closing lows. 
But yet we must consider the key resistance located at 1.3019, matching with the 100-day EMA, which comes after the high, marked just a month ago. The pair couldn’t break over these levels. Currently the key support is located at 1.2657, formed since late May. Until a break trough this level happens, either consolidation or pushing higher will remain in focus.



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