USDCAD is testing channel resistance today, a level I’ve discussed at length over the past few weeks.
The 1.3370 and 1.3470 areas were my targets for USDCAD after bouncing from the 2021 trend line in July.
But before you rush off to short USDCAD, remember that the pair has trended higher since 2021 and also reclaimed the 1.3300 lows last week.
In the last USDCAD video, I mentioned how a weekly reclaim of 1.3300 would be bullish for this market.
We also have US CPI figures coming up this Thursday.
Those numbers are sure to trigger significant volatility for a pair like USDCAD, so entering trades now is ill-advised, in my opinion.
I may look to trade USDCAD following the CPI volatility, but unless something materializes on Thursday, I will likely wait until next week.
A retrace to 1.3370 could be appealing or even a wick down to 1.3300 support.
Alternatively, a sustained break above channel resistance near 1.3460 would expose the 1.3650 pivot.
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