The USD/CAD has been consolidating since May after it found support at 1.0814. It has ranged up to 1.0960. In June so far, traders have been trading down the USD/CAD from the 1.0960 high down to 1.0840 to start this week.
As we get into the 6/16 US session, USD/CAD formed a price bottom above 1.0840. With a break above 1.0870, it completed a small double bottom, and broke above a falling trendline from the 1.0960 high.
Price action shows it is ready for a bullish cycle within the consolidation mode usd-cad has been in for over a month. Watch out for some intra-session resistance at 1.09. If price can hold above 1.0860, the 1.0940 and 1.0960 highs are exposed in the near-term. Below 1.0860, the focus will remain on the consolidation support area above 1.0814.
Looking at the daily chart, we see that the month-long consolidation followed a bearish correction from the 2014-high of 1.1278. If price falls below 1.0814, this bearish correction mode would continue, and the 1.0737 and 1.0560 pivots would be exposed.
To the upside, a break above 1.10 would probably be needed to open up the 1.1224 to 1.1278 highs.
To contact the reporter of this story, email Fan Yang at firstname.lastname@example.org
Previous: GBP/JPY Approaching the 2014-High; Breakout Projections (6/15)