USD/CAD: Last Friday's Reversal Favours a Short Term Corrective Phase
USD/CAD made a bearish reversal last Friday. Given the strong resistance area defined by 1.0609 and 1.0658, a short-term corrective phase seems likely. Supports are at 1.0471 (22/08/2013 low) and 1.0424 (intraday low). A resistance now stands at 1.0568 (23/08/2013 high).
In the longer term, the key resistance at 1.0870 (02/11/2009 high, see also the long-term declining trendline from the October 2002 peak) is expected to cap the medium-term upside potential. However, as long as the support at 1.0246 (31/07/2013 low) holds, we would still favour a mild medium-term bullish bias.