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Monitoring USD/CAD at Resistance

Earlier in the week, we noted that USD/CAD was confirming a bullish swing, and was poised to test 1.36. We warned not to trust resistance here, outside of some short-term reaction. Price has indeed tagged the 1.36 handle, and indeed we are seeing some selling.

USD/CAD Daily chart

(click to enlarge)

Outside Bar:
- The daily chart shows that as price cracked 1.36 and reached 1.3647, the market became a little bit volatile here.
- I say that because the high of the 4/27 session bar is above the 4/26 session bar high, and the 4/27 session low is lower than the 4/26 session low. This describes an outside bar (not engulfing candle because that requires "open and close" not "high and low").
Support:
- Now, this initial reaction is not surprising. In fact, we might even see some follow through. A slide towards 1.35 for example is still within the bullish outlook. Support at 1.35 would confirm that bulls are in charge. 
- I think our bullish outlook looks good unless price dips below 1.3380. There is a support/resistance pivot area between 1.3385 and 1.3410.