USD/CAD Is Climbing

Yesterday USD/CAD broke below 1.2922, but the break proved false even though the pair reached 1.2856. Later it retraced and returned to its old levels above the support, forming a hammer candlestick on the daily time-frame. That candlestick was a clear signal that the pair would start moving to the upside, which it did, further provoked by the fundamentals today. Currently it is testing the resistance at 1.3130 and a breakout above that level would lead to a further rise to the next level of resistance at 1.3170. A breakout above that resistance in turn could very likely mean that we will see USD/CAD climb all the way to 1.3430.