USD/CAD: A multi-day consolidation that saw a contraction in volatility below 1.0670 has now been broken to the upside and we look for an acceleration of gains through initial resistance by 1.0750, with a break of this level to expose 1.0870 further up. We contend that we are on the verge of a major shift in the structure with the price also attempting to establish back above the 100-Day SMA for the first time since April. Latest setbacks should now be limited to the mid-1.0400’s, with only a break back below 1.0400 to negate bullish outlook.
Written by Joel Kruger, Technical Currency Strategist for DailyFX.com
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