USDCAD has been struggling ever since breaching the multi-year high at 1.3063. Although the level held initially, the pair slipped back below it on August 10th and has since made a string of lower highs.
However that may be about to change given the break of wedge resistance that just occurred on the 4 hour chart. I mentioned this level on August 11th, noting that a 4 hour close above the trend line could be the technical catalyst needed for the pair to see higher prices.
That said, I would prefer to see a daily close above this level given the recent USDCAD weakness. Such a close would help to confirm the break and give any potential buyers added confidence that the bull trend is still healthy.
Summary: Watch for a buying opportunity on a daily close above wedge resistance. Key levels to the upside include 1.3210 and 1.3470. Alternatively, a daily close below this level would keep us on the sidelines for the time being.