Three weeks in consolidation 1.3280 – 1.3420
On Tuesday was made an attempt to break out from the consolidation, within which USDCAD was moving since March 15. The lower limit of consolidation was supported by re-tested level 1.3280. On the other hand, the upper consolidation limit is 1.3420, which is a visible resistance on the D1 .
The attempt to break failed and the day chart showed a large bearish candle with a long upper wick and the price returned to consolidation. This situation may cause rebound and during the coming sessions movement towards 1.3280.
After breakout key levels will be the target
When USDCAD finally breaks out from the mentioned consolidation, the range of move will be limited by strong levels of support and resistance. After breaking the resistance of 1.3420, the demand will be 1.3520 -the maximum of this year or even the next 12 month maximum at 1.3580. However, if level of 1.3280 is broken, the supply will target 1.3000.