USDCAD completed two consecutive bullish days this week and drove the price towards a new six-day high near the 1.2675 price level. When looking at the bigger picture, the pair has been trading within a rising sloping channel since September 2017, failing several times to exit from this range. The technical indicators, though, continue to send bullish signals, suggesting that the bullish market is not over yet.
The MACD oscillator is moving slightly above the trigger line indicating that the market could strengthen a little bit in the short-term until the price rises above the zero line. Stochastics are standing in positive area, with the indicators moving upwards and are positively aligned, supporting a bullish picture as well.
Should the pair manage to strengthen its positive momentum, the next resistance could come around the 38.2% Fibonacci retracement level near 1.2725 of the downleg from 1.3800 to 1.2060, which coincides with the 20-day simple moving average (SMA). A break above this level would strengthen the bullish bias and open the way towards the 1.2800 psychological level. Above this level, the next target could come near the 50.0% Fibonacci around the 1.2940 resistance level.
In case of further declines in the pair, immediate support may be found near the 1.2460 low, taken from the bottom on February 16 and holds near the 23.6% Fibonacci. A downside break of this zone would open the way towards the return line of the rising channel near 1.2360. If sellers manage to push below that hurdle too, that would mark a penetration of the pattern and drive the price towards 1.2250, shifting the bias to bearish.
