FX.co ★ USDCAD reaches our second target

USDCAD has reached today our second target of 1.3275 and has already broken above it and above an important downward sloping trend line resistance. This bullish signal could imply more upside in USDCAD.

Since January 18th we have pointed out the bullish flag pattern in USDCAD and the two Fibonacci targets. Price has not only reached our second target, it has now broken above the downward sloping resistance trend line. A back test on the upper side of the trend line is expected as a confirmation of the break out. So a pull back is expected. Bulls would want this pull back to be followed by a strong bounce that would provide a higher high afterwards. Bulls do not want to see price pull back below the green line and stay below it. Support is between 1.3240 and 1.3190. I expect more upside in this pair and consider any pull back as a buying opportunity.