USD/CAD: We continue to retain a strong bullish bias for the pair with the market in the process of consolidating ahead of the next major upside extension beyond 1.0870. The market has been putting in a series of gradual lower tops since August, but we contend that this pattern is on the verge of expiration, with a break above 1.0870 to confirm. Setbacks have been very well supported in the mid-1.0400's and we look for a break back above 1.0620 to accelerate gains to 1.0750. Above 1.0750 then exposes next meaningful resistance by 1.0870 further up. Ultimately, only back under 1.0400 would negate outlook. POSITION: LONG @1.0465 FOR AN OPEN OBJECTIVE; STOP @1.0345.
Written by Joel Kruger, Technical Currency Strategist for DailyFX.com
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