The USD/CAD has broken above the short-term bearish channel and has given initial reversal signals for a trend. This reversal can be of a large-degree reversal that could push the price back towards 1.40.
Blue lines - bearish channel
The USD/CAD pair has broken above the bearish channel and is now testing the Kumo (cloud) resistance at 1.34. A breakout above the cloud will confirm the short-term trend reversal and can push the price towards 1.40. Short-term support is found at 1.3279, while short-term resistance is seen at 1.3360.
Looking at the weekly USD/CAD chart, we can observe how the price has reached the important long-term support trend line. At the same time, the stochastic oscillator has reached the oversold levels. At 1.3165, we could see an important multi-week low as the price has reversed. Important weekly resistance is seen in the area of 1.37-1.40. Breaking above this area will open the way towards new highs.
The material has been provided by InstaForex Company - www.instaforex.com