Risk aversion is boosting the USD and pushing down commodity crosses. The USD/CAD is breaking away from its recent sideways action. The sideways action was consolidation after a breakout above a declining wedge, so today’s bullish price action is a confirmation that the breakout is following through.
It is now trying to break above this week’s high at 1.0316. If the USD/CAD falls below the 1.0265 pivot, it would take away the edge for the bullish outlook.
Otherwise, holding above the 1.03 handle would be a clear sign of the market heading back toward the June high near 1.0440.
In the 1H chart, we see that the 1.0316 level has not been broken yet. Again, if the 1.0266 pivot holds, and the 1H RSI can hold above 40, preferably above 50, we should anticipate a rally afterwards to break 1.0316.
The first near-term resistance is around 1.0350, seen as a pivot in the 4H chart.