The Canadian dollar loses significantly this month to USD. USD/CAD quotations were at the highest level in two months yesterday.
As you can see in the daily chart below, the price after the rebound to the support zone created by the horizontal level of 1.3130 and the lower limit of the triangle, quickly turned to the resistance of this formation 200-pips higher.
The above resistance was overcome on Tuesday, while yesterday’s increases on USD/CAD were even stronger. As a result, the buyers managed to break the resistance at 1,3374.
The price action from recent days indicates a significant advantage of bulls and may encourage to look for long opportunities. Bulls can look for long setups after moving back to one of the broken resistances (1.3318 and 1.3374), which can now provide support.
Maintaining the upward trend gives a chance for an increase to the current year’s maxima around 1.3660. The bullish attitude will be questioned in case of closing the session back in the zone formed by the triangle.
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