Commentary: Near term USDCAD price action is choppy and corrective, which makes trading this pair on a short term basis risky right now. When price action is choppy, we prefer to sit tight and wait for a clearer pattern to emerge. The longer term charts (we are showing the weekly today) indicate that a significant bottom may be in place at 1.0340.
A rally above 1.0676 most likely leads to a break above 1.0866. Short term, there is a possible head and shoulders continuation pattern, which is bearish. This pattern would suggest a retest of 1.0340 while 1.0676 remains intact. Strategy: Bullish on a break above 1.0676, against 1.0340, target TBD