USD/CAD has likely started a new phase of strength. A test of the declining channel (around 1.0515) is at least expected. Monitor the test of the resistance area between 1.0420 and 1.0436. A support stands at 1.0366.

In the longer term, the key resistance at 1.0870 (02/11/2009 high and the long-term declining trendline from the October 2002 peak) continues to represent a major hurdle. However, the successful test of the support area implied by the long-term rising trendline (around 1.0257) and the 200 day moving average favours a new test of this obstacle.

Daily Technical Report