USD/CAD: Approaching a Resistance Area
USD/CAD continues to improve and is now challenging the resistance at 1.0942 (see also the top of a potential rising channel). We favour an eventual break of these levels. Other resistances can be found at 1.1004 and 1.1048/1.1053 (23/04/2014 high). Hourly supports lie at 1.0906 (intraday low) and 1.0886 (28/05/2014 high).
In the longer term, the technical structure looks like a rounding bottom with a minimum target at 1.1725. However, the key resistance given by the 50% retracement (around 1.1236) of the decline from the September 2009 peak at 1.3065 remains thus far intact. Key supports are given by the 200 day moving average (around 1.0749) and 1.0559 (29/11/2013 low).