USDCAD rose to a new 6-year high on Monday to hit 1.3023. The bias remains to the upside with a target of 1.3063, the high that was hit back in March 2009. The bullish crossover of the tenkan-sen with the kijun-sen line at the beginning of July and the break above the Ichimoku cloud supports the upside momentum. The market is above the 200-day moving average so this is bullish as well.
In the near-term there could be some consolidation since the RSI has reached overbought levels above 70 and we can see the tenkan-sen line is starting to flatten out. The bias could turn neutral with prices capped below 1.3023 and with support at 1.2904. But only a break below 1.1919 would shift the current upside bias back to the downside.
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