Fan Yang
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USD/CAD at Consolidation High; Double Bottom Complete

The USD/CAD has completed a double bottom. But at the same time, a different perspective argues that USD/CAD is simply in consolidation between 1.0813 and 1.0940, especially if 1.0940 becomes resistance.

(USDCAD 4h Chart)

With the oscillators in overbought condition, the market might at least provide a near-term, intra-session bearish attempt. So far in the 6/4 session, traders seem to be defending the 1.0940 resistance. 

The bearish outlook at first should be limited to 1.0885, central pivot of the current consolidation or double bottom. A break below 1.0885 might revive the prevailing bearish outlook.

However holding above 1.0885 maintains upside risk toward the 1.10 resistance. Above that, the bullish continuation outlook since Sept. 2012 might be revived, first opening up the 1.1050, 1.1150 highs, and then the 2014-high around 1.1277.

10:00AM ET: BOC Rate statement coming up