The Prospects of USD/CAD Rebound Continuation
|The technicals indicated high likelihood of an upswing, and the pair obliged by moving higher recently. Great, but with quite a move behind us already, let's assess further appreciation potential as it stands right now.
Quoting our last commentary on this currency pair:
(...) we noticed another move to the upside, which not only invalidated yesterday's drop below the green line, but also the earlier breakdown below the lower border of the declining red trend channel. Both of these invalidations are bullish signs.
Additionally, the current position of the daily indicators suggests that further improvement is just around the corner.
The situation developed in line with the above scenario and USD/CAD managed to break above the upper border of the blue consolidation during yesterday's session. Earlier today, the pair extended gains, making our long positions even more profitable.
As the buy signals continue to support the buyers, this observation of yesterday keeps being still valid:
(...) Should this be the case and USD/CAD extends gains from here, the initial upside target will be the previously broken black line – that is the neck line of the head and shoulders formation.
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