usd-cad

USD/CAD – Price action has been most encouraging for bulls of late with the market surging last Tuesday to trigger a very non-classical double bottom formation that now projects initial upside over the coming sessions into the mid-1.0600’s. Our overall outlook for the pair is constructive and we look for significant upside over the coming weeks. A closer look at the weekly chart shows the formation of a bullish hammer, followed by some encouraging price action in the latest week, after taking out the previous weekly high to end a sequence of consecutive weekly lower tops. Look for setbacks to now be very well supported ahead of 1.0265, with a higher low now ideally sought out by 1.0380, to be confirmed on a break back above 1.0585.

Written by Joel Kruger, Technical Currency Strategist for DailyFX.com
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