USD/CAD comfortably above 1.04 – Next target sits at 1.059
The greenback gained significant ground against the Canadian Dollar in the past week breaking through 1.04 that has been offering strong resistance since July 2011. This morning we are higher again as USD/CAD trades at 1.0506 at the time of writing. With the bulls retaining the upper hand at the start of the week and the RSI lacking downward momentum on the daily chart, we expect to see further upside potential in this market. A break above 1.0535 would open the door for 1.059 and 1.072. We do expect to see some choppy action on the way up though, which means that we are likely to see pullbacks. Any price action in the vicinity of 1.04 but still above that area could be seen as good buying opportunity. Only a consistent break below 1.04 would make us reconsider the bullish outlook of the market.
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