USD/CAD has likely started a new phase of strength. A test of the declining channel (around 1.0515) is expected as a minimum upside potential. The break of the resistance at 1.0436 confirms this scenario. Hourly supports stand at 1.0411 and 1.0366.
In the longer term, the key resistance at 1.0870 (02 November 2009 high and the long-term declining trendline from the October 2002 peak) continues to represent a major hurdle. However, the successful test of the support area implied by the long-term rising trendline (around 1.0257) and the 200 day moving average favours a new test of this obstacle.
Levels to watch: 1.0365 1.0395 1.0420 | 1.0470 1.0496 1.0547
Trading Strategy: Pending Order to go long at 1.0420 with a 1.0360 stop. Target at 1.0545.
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