The USDCAD pair managed to dip for the first part of the week, but turn around and pop over the latter half. The pair bounced just above the 50 percent Fibonacci level, and technical indicators remain bullish of this pair. The wave of economic figures this week is expected to dictate again the market mood which in turn directs the USDCAD pair to move higher after a challenge of parity. Because of this, analysts are forecasting to buy this pair going forward, and consider that small unexpected dips are still evidence of buying opportunities. In fact, if the pair runs the 1.0000 level this week, technical analysts are anticipating that the USDCAD pair will hang onto this long sided trade for more weeks. 

 

In the bigger picture, there is a strong bullish convergence condition in weekly MACD while the pair is also sustaining above 55-weeks EMA. These are signs that the USDCAD has climbed higher than its medium-term trend at 0.9933. A looming break above its 0.9989 resistance is mildly in favor as well in the bulls and in that case, the USDCAD should target a test on 1.0186 at its next possible climb. However, a failure to sustain above 1.0041 will indicate that the recent downward rally early this year is not yet over and is still in progress for another low below 0.9474. 

 

Meanwhile, in the longer-term picture, with intact resistance at 1.0235, there is no scope for bullish trend solidification yet. Though, some more consolidative trading would be seen in medium term above 1.0028 first before the long term downtrend from its recent rally resumes.