Hello dear fellows, today I am going to provide you with a powerful trading insight on one of the USD majors – the USD/CAD pair. The analysis is on a weekly basis because its purpose is to define a possible long-term perspective for the pair.
Currently, what I spot is a strong bullish trend that has sharpened and accelerated after the prices rebounded from the 1.2000 support zone. Since then, the middle line of the Bollinger Bands Indicator is playing a role of a dynamic support zone and lately we spot that the pair has again rebounded from it.
From a technical perspective, the rebound is confirmed and in a mid-term perspective, the pair should move in a bullish fashion towards the prior highs located at 1.4700 as there are even chances for the bulls to rush towards the psychological zone around 1.5000. Even if we see the prices dropping below 1.3550, the overall up-trend pattern will be still in place as long as the second ascending support is active. However, if we see a drop below 1.3550, I would expect a test of the 1.3000 support zone. Only a break below 1.2800 would indicate a major trend reversal situation.