USDCAD - 240 - A bit of retracement, maybe?
USD/CAD had a strong day yesterday. The pair made about 90 pips from its open to its close. We have the US GDP figures coming out before the US opening bell that could again bring some more movement. The steep up-trend, that started on the 2nd of February, is still present and until that is violated, the longer-term direction is up.
The 4h chart is still showing us this up-pointing wedge formation, that USD/CAD is respecting for now. The price is currently knocking on the upper side of that formation, but even though the trend is still upwards moving, we might get a bit of retracement, before it could move higher. A move back to 1.27500 or even 1.27250, could be perfect areas for a bounce towards the upside. If this scenario is correct, then we could see a break of the mentioned wedge formation to the upside and the pair making new highs for this month.
If 1.27250 is not going to be strong enough to withhold the price, then a move back down, towards the 50 EMA on the 4h chart, could be something to consider. That could be around 1.26600.
The 4h chart is still showing us this up-pointing wedge formation, that USD/CAD is respecting for now. The price is currently knocking on the upper side of that formation, but even though the trend is still upwards moving, we might get a bit of retracement, before it could move higher. A move back to 1.27500 or even 1.27250, could be perfect areas for a bounce towards the upside. If this scenario is correct, then we could see a break of the mentioned wedge formation to the upside and the pair making new highs for this month.
If 1.27250 is not going to be strong enough to withhold the price, then a move back down, towards the 50 EMA on the 4h chart, could be something to consider. That could be around 1.26600.