USD/CAD 4H Chart 7/23/2012 8:25 AM EDT
The USD/CAD found support at 1.0065, after a decline that extends back to the beginning of June. As the market continues to rally this Monday 7/23, the USD/CAD is attacking and cracking some resistance factors around 1.0170.
1) previous support/resistance pivot
2) declining trendline connecting 6/28 and 7/12 highs.
This opens up the 7/12 high near 1.0250.
The test of the less sharp declining trendline, which connects the 6/4 high at 1.0440 with the 6/28 high at 1.0355 will be met if the current rally extends toward 1.03 this week. Therefore, the current breakout above 1.0170 exposes 1.0250 and 1.03 in the short-term.
It should be noted int he daily chart that the RSI reading basically held above 40, which reflects maintenance of the bullish momentum USD/CAD established when it pushed above 70 in May.
USD/CAD Daily Chart 7/23/2012 8:30AM EDT