I believe we are seeing a shift in the market structure on this pair after creating a new Higher High after a series of Lower Highs.
I am looking for price to form an inverse head and shoulders off strong support at 1.2600. to push price higher.
I am awaiting a break of the descending trend line to confirm further bullish momentum.
Price is currently in a big bullish channel, with price pending a break of the descending counter trend to move bullish, or a break of the ascending trend line to move bearish.
i have analysed USDCAD and am in favour of a bullish break out.
Based on a variety of confluences I have established a bullish bias on this pair.
I have analysed the Dollar Index from the weekly down to the 4 hour and established an overall bearish bias.
I am waiting for price to pull back and retest our broken descending trend line together with a possible rejection from the ascending trend line and our 61.80% Fibonacci level to go long.
Price has broken support and a possible short could be on the cards upon the retest of this broken support now turned resistance, among other factors.
A move back up to the top of the channel could lead to short opportunities.
Bullish potential after the break of both a major and minor descending trend line.