Three months ago today, we talked about how USDCAD was looking for direction near the 14-month long bearish trend. Since then USDCAD broke that channel and the trend’s direction turned bullish. After hitting the original target, 200-day moving average, a medium-term uptrend channel formed.
Currently, the upper and lower line of that trend channel is the main support and resistance level for USDCAD. Trudeau’s third term win is pressuring the price, and if FED decides to pass this meeting in case of tapering, USDCAD may fall to the 1.2640-1.2570 support levels. But as long as these supports hold, this move may only be a buying opportunity.
For upward moves, the 1.3027-1.3040 zone will be a major resistance zone above the previous top of August.