The pair is in the process of building a nice double bottom formation on the weekly chart which will definitly confirmed with a break above 0,9920 (June high).
The latest price actions and the bullish momentum on both the daily and weekly chart encourage a bullish prospect despite the expected intense pressure on the US Dollar.
Why is this possible ? The Canadian economy and financial situation are very dependent on the US economic health as it is their main exporter. Any recession in the US will probably cloud the Canadian economic and financial outlook.
As a result, from a fundamental perspective, we consider that the recent news will have negative repercussion on the Canadian Dollar, enough to prop the USD/CAD.
We still encourage a bullish prospect on the pair and we will see how the market reacts near the key 0,99 resistance.
