FX.co ★ USDCAD back tests break out area

USDCAD as expected is back testing the break out area at 1.3150. Price is expected to bounce from current levels towards 1.3350-1.34. Bulls need to hold above the broken bearish channels in order for this upward move to continue higher.

Blue lines - bearish short-term channel

Red lines - bearish medium-term channel

Pink line - expected move

USDCAD is most probably forming another higher low in the new sequence that started at 1.30. Price has broken above the bearish channels and this is big news for bulls. Continuing the move of higher highs and higher lows is important for our target of 1.3350-1.34. Support is at 1.3130. Our trading plan remains the same. We are bullish as long as price is above 1.31.