USDCAD has been developing within a rounding bottom pattern since 2009 until the end of 2015. Rounding bottom is a reversal pattern and as the previous trend was a downtrend, the expectation is for a rising movement on a long-term basis. During January 2016, the pair recorded a fresh 13-year high at 1.4690 and then started a retracement to the downside with a new 2-year low at 1.2040.
Remaining on the monthly chart, the next resistance to have in mind is 1.3790 as well as 1.4690. Technical indicators are losing some momentum in the long-term, however, are still moving in positive territories. Moreover, the price is holding above the 50 and 100 simple moving averages indicating the potential for further upside move.
USDCAD has been developing within a rounding bottom pattern since 2009 until the end of 2015. Rounding bottom is a reversal pattern and as the previous trend was a downtrend, the expectation is for a rising movement on a long-term basis. During January 2016, the pair recorded a fresh 13-year high at 1.4690 and then started a retracement to the downside with a new 2-year low at 1.2040.
Remaining on the monthly chart, the next resistance to have in mind is 1.3790 as well as 1.4690. Technical indicators are losing some momentum in the long-term, however, are still moving in positive territories. Moreover, the price is holding above the 50 and 100 simple moving averages indicating the potential for further upside move.
