Please be noted that a hammer pattern occurred at 1.3753 to form a bottom in USD/CAD's declining rallies. As a result, we have been observing spikes from last three days upto today's highs of 1.3977.
At that juncture, this has tested a strong support at 1.38 areas where it had taken the support at the same level in the recent past.
We don't think previous short term downtrend was so robust as there was no conformity to the volumes, as you can see the volumes fading away while price dropping down. This reminds us that there were no strong bearish sentiments in the FX markets.
While leading oscillators reached oversold zone, the pair on EOD chart seems to show the bullish indications as alerts by RSI and stochastic curves divergence to the previous price decline.
Currently, slow stochastic has shown %K crossover at 20's which is oversold territory, this would also deemed as an early signal for buying momentum is intensified.
If you have to conduct analysis for long term, the bull trend has been moving in healthy upward channel with timely corrections on monthly charts.
Overall, the pair has cleared all major resistance levels decisively testing supports several times exactly at lower trend line.
Currently, the Loonie has recently tested support at 1.3639 and broken psychological resistance levels again at 1.3719 levels (i.e. 11 and half years highs) which is way beyond 21MA.
Well, overall we had added fresh longs on USD/CAD in our fundamental portfolio tracker at an average entry of 1.3815, we now load up more weights to target the retest 1.4050 sooner or later.
Eyeing on dips for better entry levels again by raising the stop for now to 1.3807 for targets around 1.4050 plus.
