On the daily chart USDCAD a noticeable trend is evidenced by a sequence of increasing higher highs and lows. An additional tool to determine the trend are the moving averages EMA scale D1 (75- and 100-periodic), which are directed upwards. Most of the time price is above said averages. You can notice that the test of resistance around the 1.3300 round level led to a correction of recent increases.
Declines tested support below 1.3120. At this point you could see that the price has fallen below the ascending band of averages and the similarity of corrections (green rectangle). Yesterday’s candle has created a demand formation – a hammer. Candle closed above support 1.3120. Currently we see increased demand, which supports the growth impulse. Strong resistance is located around the round level of 1.3300 in the case of breaking the previously mentioned resistance zone it will serve as a support level, and will open the way for further growth of USDCAD.
