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USD/CAD Pops Up to a New High on the Month

USD/CAD was bullish this week, reversing a previous downswing from just below 1.11 to 1.0886. In the 1H chart we can see price break above a falling trendline and the moving averages. Then it consolidated in a tight range between 1.1064 and 1.1087. As we got start with the 9/24 US session, the USD rallied across the board, and USD/CAD popped up above this range, and broke above the previous September high.

(USD/CAD 1H Chart 9/24)

The daily chart shows a bullish trend as well. In fact there is a similarity between the 1H and daily chart in that it has popped up above the moving averages and treated them as support. The RSI in both tagged 70 and held above 40, showing maintenance of bullish momentum. 

With the 1.11 level cleared, USD/CAD looks poised to test the 2014-high at 1.1278. It should be noted that a break above 1.1278 would open up 5-year highs not seen since July 2009. This can be a major bullish signal, but in the short-term we will probably be prudent to expect some consolidation around 1.13 especially if the daily RSI shows extreme overbought condition.

(USD/CAD Daily Chart 9/24)