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Technical Analysis – USDCAD bullish after rising above Ichimoku cloud

The intraday bias for USDCAD remains to the upside after prices crossed above the top of the Ichimoku cloud and above the kijun-sen line. After a brief dip below the cloud to 1.2126 last week, USDCAD bounced and rose back above the cloud today. The upside momentum looks like it still has strength since the RSI is above 50 and rising.

For now, the top of the cloud is providing immediate support at 1.2374. To the downside, if prices break below support at 1.2126 this would weak the bullish bias.

Prices would have to rise above this month’s high of 1.2562 and target the multi-year high of 1.2834 hit on March 18 in order for the market to end its corrective decline of the prior long term uptrend. The market is not really trending now. Looking at the bigger picture, USDCAD was in an uptrend from 1.0619 in July 2014 to 1.2834 in March 2015, so a break above 1.2834 would confirm the bullish trend.

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