FX.co ★ USDCAD is moving higher approaching target area.

USDCAD is moving above 1.33 and is approaching our bounce target of 1.3350-1.34. Price has broken out of the bearish channel and after the back test at 1.3160 we turned bullish looking for a move towards 1.3350-1.34.

Blue lines - bearish channel

Green rectangle - support

Black lines - Fibonacci levels

USDCAD is bouncing higher and so far price has broken above the 38% Fibonacci retracement of the latest downward move. Next target is the 1.3420 where we find the 61.8% Fibonacci level. As long as price is above the 1.3160 green rectangle area we remain bullish.

On a weekly basis price has broken out of the bearish long-term channel. If price continues to make higher highs and higher lows we could see USDCAD reaching 1.36 where we find the 38% Fibonacci retracement of the entire decline since March. We remain bullish since our buy signal around 1.3160 and we raise our stop to that level. Next target is 1.3350-1.3420.