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USD/CAD in Bullish Continuation Mode

USD/CAD has been consolidating in August after rallying from July's low of 1.0620. After stalling at 1.0986 we saw a double top completed last week. However there was no significant bearish correction from this double top. Price held above a rising trendline originating from the July-11-low of 1.0630. The 4H RSI was mostly held above 40, which maintains the bullish momentum in this time-frame. Finally price has returned above the 100-, and 50-period SMAs in the 4H chart, reviving the bullish bias in this time-frame.

(USD/CAD 4H Chart)

Now, there is no bullish continuation just yet. The market remains in a neutral-bullish mode in August. USD/CAD retreated from the August high of 1.0986, but the bullish bias is still there outside this near-term bearish attempt.

If price can stay above 1.0920-30 area, the bullish bias remains. Below 1.0920, price could be focused back to the 1.0860 low. A break below 1.0860 will be needed to introduce a bearish outlook, or the market is still neutral-bullish. 

If the market does stay above 1.0920-30, and breaks above 1.0896, the next resistance will be at the 1.0150 high from April.

(USD/CAD Daily Chart)