FX.co ★ USDCAD bounce continues as expected towards 1.3335

Around 1.31 we saw the bounce is USDCAD coming towards 1.32 at first and then towards 1.3335. Now we see price at our second target which is important resistance.

Black line - medium-term resistance trend line

USDCAD has respected the lower channel boundary support and reversed higher. Price initially reached our target of 1.32 and now is challenging our last bounce target of 1.3335. Recapturing 1.3340 is important for a continued move higher towards 1.3480-1.35 where we find an important medium-term downward sloping resistance trend line. Support is at the previous resistance area of 1.3230. Breaking below this level would be a bearish sign.