The USDCAD pair started going in the opposite direction trying to breach the 1.2900 price line. The recent bull rise is taking into play the prospect that we will see the best levels of 2021.
A short consolidation period would do some good and potentially offer would-be traders an opportunity to join in on a further advance should that be the path moving forward. It is unlikely, unless the digestion period is to become extensive or the pullback deep, that we see the developing trend-line off the June low get touched.
Looking ahead if the yearly high is broken then the 1.2950 level will become the focus. It was support in early 2020 and during November and December it acted as support and resistance, respectively. The level appears to have solid meaning.
For now we are waiting for any news as the economic calendar today has only the Canadian monthly Core Retail Sales due to the last summer holidays. We remain bullish.
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