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USD/CAD breaks falling resistance

USD/CAD appears appears to be reversing the bearish correction we saw in the past month. After price fell from 1.3250 to about 1.2765, the pair has sprung up above 1.31 by the 8/31 session.

USD/CAD 4H Chart 8/31

(click to enlarge)

Signs of bullish reversal:
- The push to 1.31 broke above a falling speedline seen in the 4H chart. 
- Price is now above the 200-, 100-, and 50-period simple moving averages (SMAs).
- The SMAs are also turning back into positive slope, but are not yet in bullish alignment.
- The RSI pushed above 70 showing bullish alignment. 

Key support:
- If the bullish scenario is truly developing, we should see support in the 1.2950-1.30 area.
- This is a key support/resistance area. 
- This area will represent the SMAs, which should become support.
- The RSI should hold above 40. 
- A break below 1.2950 with the RSI falling below 40 would reflect a failed bullish attempt, and would open up a bearish continuation scenario with at least the 1.2765 low in sight.