On April 2nd, I discussed a pattern that would likely send the USDCAD higher.
I also mentioned two options for USDCAD bulls on March 30th.
The key takeaway from those posts was that buyers needed to secure a close above the descending channel resistance.
Buyers achieved that with Wednesday’s close.
We discussed the pair throughout Wednesday’s session in the member forums.
One thing I said was that as long as USDCAD stays above 1.4000, the targets are 1.5000 and 1.5500.
Of course, the USDCAD would need to take out the year-to-date high first before it can realize either of those targets.
If you view the monthly time frame between 1998 and 2002, you’ll quickly notice how influential 1.5000 was.
Furthermore, if I use the March 9th gap up to measure the objective, I get a value of 1.5000 or thereabouts.
And if I use the year-to-date low of 1.2960 to determine the objective, I get a value of 1.5550.
USDCAD could move higher than that, but those levels will play a role.
Just remember that there are no guarantees.
As nice as things look for USDCAD bulls today, that can change in a heartbeat, especially in these incredibly volatile markets.
That said, the technicals are just as relevant as ever.
I would even argue that technical analysis is more important now given the unprecedented nature of things.
With that in mind, I’ll remain bullish USDCAD while above 1.4000 with targets of 1.4660, 1.5000, and 1.5500.
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