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USDCAD : Broke Out on 4 Hour Chart, Remain Bullish in Long Term

USDCAD : 4 Hour Chart

US dollar again strengthened against Canadian dollar as demand for dollar continues to weigh and broke out from the falling resistance trend line on the 4 hour chart. Prior to the breakout the pair was trading within the falling channel and testing the key support at 1.0924. The pair reversed the downtrend and broke out. Currently it is testing the resistance at 1.1001 as well as from the 50 day SMA. If it is able to break above this resistance, the next resistance it may find is at 1.1030. The nearest support for the pair is at 1.0980.

USDCAD : Daily Chart

On the daily chart, the pair continues to signal an uptrend as it is following a rising channel trend. It broke out from the resistance at 1.0986 which it tried to break out earlier also but declined finding resistance from the resistance trend line of the channel. We can expect the pair to surge again upto the rising resistance trend line. The 50 day SMA is also contracting towards the 200 day SMA and might cross above it signaling an upward continuation.

The demand for US dollar continues to weigh on the pair as investors are expecting Fed to start increasing interest rates in mid of 2015.