Technical analysis
The USDCAD pair has broken above its 200-day moving average, so the overall trading trend is now bullish.
When the trend turns bullish on the daily time frame then buying dips is usually the best strategy.
What the possible outcomes are
In our most likely scenario, USDCAD may experience a technical correction towards the first support level of 1.2700 and then rally towards the 1.3000 level. If the pair falls below the first support level, we can expect at least another test towards the second support level at 1.2640, which is the pairs 200-day moving average.
Alternatively, the USDCAD pair can just continue to trade higher and start to advance towards the 1.3000 resistance level, which is a likely mid-term target for bulls.
Key levels
Support 1.2700 1.2640
Resistance 1.2880 1.3000
