September 18 USDCAD tried to break below the consolidation, in which it was moving for more than a month. In the analysis of September 22, I wrote: “often false breakout from the consolidation in one direction ends with a proper breakout in the opposite direction. If such situation will take place it will follow the main trend.”
In fact, break below was a fakey (false breakout) and price dynamically returned to the upper limit of the consolidation (level 1.3320). Friday was the first failed attempt at breaking resistance, and on Monday the bears finally capitulated and resistance was break above. Last tima USDCAD was at such high levels in 2004.
Wider view, interval monthly
The closest resistance, which can point only at monthly intervals is the level of 1.3800. Price from 2011 is in a strong uptrend and breakout USDCAD upside of consolidation is a fact, which was to be expected.
