USD/CAD may have resumed its short term upside recovery from 1.0246 (01/08/2013 low). However, as mentioned in recent reports we are anticipating the formation of a lower high, under the annual high for a swing back lower to test the area closer to the 200 day moving average and long term trend line support from 0.9633 (14/09/2012 low).

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 1.0137 (14/06/2013 low, see also the rising trendline from 0.9633 (14/09/2012 low) in a daily chart) holds, we would still favour a mild medium-term bullish bias.

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