USDCAD has displayed bullish momentum, breaking above the key resistance level of 1.3543 and extending its uptrend from 1.3358. This breakout raises questions about the pair’s future direction. Let’s analyze the technicals to understand what this means for traders.
Uptrend Resumes with Potential Targets
- Resistance Conquered: The decisive move above 1.3543 signifies a potential continuation of the uptrend that began at 1.3358.
- Further Upside: If the bullish momentum persists, the next target could be around the 1.3650 area, with an even more ambitious target of 1.3760 beyond that.
Support Levels to Watch
- Initial Safety Net: The initial support level to monitor in case of a pullback is at 1.3510.
- Breakdown Scenario: A decline below this level could lead to a retracement towards the 1.3500 zone, indicating a potential pause in the uptrend.
Overall Sentiment
The breakout above 1.3543 paints a bullish picture for USDCAD in the near term. However, consolidation is likely before the potential rise towards 1.3650. The price action around the support levels will be crucial to confirm the uptrend’s strength. A breakdown below 1.3510 could indicate a pause or even a reversal of the bullish momentum.