As mentioned in the weekly commentary, USDCAD has made a habit of punching through trend line resistance over the past several weeks. The first occurred on May 18th with a break of wedge resistance and the second on May 22nd.
The bulls apparently aren’t done yet as the pair just made a key 4 hour break of yet another level of resistance. A break this early in the week presents a potentially favorable buying opportunity.
From here we could see a retest of the 1.2660 key level if this is indeed a third breakout for the pair. Break that and the previous range resistance at 1.2800 is just 140 pips away.
Keep in mind that Friday’s session will be a volatile one for USDCAD with employment data on tap for the US and Canada at 8:30am EST.
Summary: Opportunity to buy a retest of broken trend line resistance as new support. Key resistance comes in at 1.2660 and 1.2800.