Technical Bias: Bullish
The USDCAD eased off six-year highs on Monday, as the US dollar faced broad consolidation leading up to Wednesday’s FOMC announcement.
The USDCAD declined around 40 pips to 1.2748 after closing just below the 1.28 level on Friday. Near-term support is offered at 1.2702. On the upside, the pair faces technical resistance at 1.2846.
The MACD has moved above the zero line, indicating further bullish upside for the pair. The RSI has also pulled back from overbought levels, suggesting once again the pair is poised for a bigger breakout.
While the 1.30 level remains outside the technical parameters at this point, a Fed-induced rally could push the USDCAD to new highs. The pair hasn’t traded above 1.30 since 2004.