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USD/CAD Continues to Rally Toward the 2014-High

USD/CAD has been bullish since finding support at 1.0620 in June. After a consolidation in August, price is now pushing above the 1.1053 resistance pivot from April. This rally opens now opens up the 1.1278 high on the year.

USD/CAD Daily Chart 9/12

(click to enlarge)

In the daily chart, the 200-, 100-, and 50-day simple moving averages are trying to get back to bullish alignment. Price did respect them as support after a crossover, which is known as a bullish slingshot signal. The RSI also tagged 70 and has been holding above 40, which shows maintenance of the bullish momentum. 

If we get a pullback at this point, we should expect support in the 1.09-1.10 area. We will need a break below 1.09 to shelve the bullish outlook to the 2014-high. If will require a break below 1.08 to introduce a bearish outlook.