USDCAD - Recovering But Vulnerable

USDCAD - Recovering But Vulnerable

USDCAD - Although a higher close was recorded the past week, the pair will have to break and above its declining trendline to convince the market of further upside. While the mentioned trendline caps upside, an eventual return to the 0.9814/22 levels is likely.

A breach will aim at the 0.9692/31 levels followed by the 0.9500 level. On the upside, USDCAD will have to break and hold above the 0.9922/56 levels to reverse its broader bear threats.

This if seen will call for a run at the 1.0055 level and then the 1.0081 level. Further out, resistance lies at the 1.0250 level. All in all, USDCAD remains biased to the downside below its trendline resistance.