USD/CAD 1H Chart 7/12/2012 10:05AM EDT
The USD/CAD broke above a resistance at 1.0230. The 4H chart shows this to be a confluence of the 50% retracement and previous support/resistance pivot. The 1.0250 handle is also the 200-4H-SMA. If the rally extends, the next key resistance is in the 1.03-1.0315 area. Here we have a previous resistance pivot, the 78.6% retracement, and a declining trendline from June.
The 1.0250 handle also represents a short-term channel resistance, seen in both the 4H and 1H charts. The 1H chart does show bullish momentum starting to build with the RSI tagging 70 and being able to hold above 40 (albeit with a couple of brief violations).
If the market slows down at the current channel resistance, but remains above 1.02, the bullish attempt is still intact.
USD/CAD 1H Chart 7/12/2012 10:07AM EDT