USD/CAD Could Rebound to Last Year’s Short-Term High
From a technical analysis perspective, the outlook for USD/CAD is greatly improving despite the recent exit from the bottom of the ascending triangle.
The exchange rate has formed a “morning star” over the past few sessions from major support at around 1.2450 which is the January low. This rebound comes after a bullish divergence in the RSI, the last ones having preceded significant rebounds in the exchange rate which is a good omen.
The first resistance to watch will be the recent month high at around 1.2950 below which USD/CAD retreated last August, September, December and March.
This bullish outlook would theoretically be invalidated in the event of a pullback below the week’s low at around 1.24.