USDCAD is forming a support retest amid the strengthening of the dollar index. A break of the local resistance, against the background of the uptrend, will give us an excellent bullish potential.
The market is preparing to rise further. We have an uptrend and support from the strengthening of the dollar index. On the back of positive fundamental data, the DXY continues to strengthen, which will make the Canadian dollar weaker against the US dollar. On the chart we see the retest of the support of the ascending price channel and the formation of a bullish impulse. The resistance at 1.3502 plays an important role for us. If this area is broken through, the market may form a strong bullish impulse in which, in the medium term, the price may quickly reach 1.3640 and even 1.38000. The moving averages are forming a signal, but it may not mean anything on the fundamental background.
Support levels: 1.3424
Resistance levels: 1.3502, 1.3542
I expect the continuation of growth on the background of strengthening of the dollar and on the background of the bullish trend.