USDCAD draws positive formation – Analysis - 27-12-2016

The USDCAD pair continued its positive trading to approach from our main waited target at 1.3574 and settles there, and by taking a deeper look at the chart, we find that the mentioned level represents neckline of the medium term cup and handle pattern, which means that breaching it will open the way to extend the pair's gains to surpass 1.3837 barrier and reach 1.4162 as a next main station.

The EMA50 keeps provide the positive support to the price, while stochastic provides positive signals on the four hours' time frame, therefore, these factors encourage us to suggest breaching the above mentioned neckline followed by continuing to rise in the upcoming sessions, noting that holding above 1.3310 level represents key condition to continue the suggested positive scenario.

Expected trading range for today is between 1.3450 support and 1.3650 resistance.

Expected trend for today: Bullish