USD/CAD Clarifies a Bullish Breakout

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USD/CAD Clarifies a Bullish Breakout

Last week, we had mixed US jobs data which eventually dragged the USD across the board. However, Canadian job data clearly disappointed, so the USD/CAD ended up with a bullish reaction.

Friday’s bullish reaction in USD/CAD pushed it above the week’s high, but the pair ended up closing below that high at 1.1873. However, to start this week, it is clarifying the breakout, with the 1.1950 range breakout projection in sight.

We should expect some resistance around 1.1950-1.20, but a more significant resistance awaits around 1.22. When we look at the monthly chart, we see topping action in 2008-2009, where the central pivot is around 1.22. This could be a medium-term target. The medium to long-term target however, is back to those 2008-2009 highs around 1.30.

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Fan Yang has been a professional forex trader and analyst since 2007. He specializes in technical analysis and has a Chartered Market Technician designation since 2011. He was the chief technical strategist at CMSFX He was also the founder and chief currency strategist at FXTimes Over the years, Fan has not only been a trader and analyst but also an educator. As a proponent of both technical and fundamental analysis in trading, Fan advocates simplicity and discipline as key factors in making trading decisions when faced with so many "clues" and "signals". Currently Fan Yang is the chief currency analyst and webinar instructor at forexminute.com.