USD/CAD Breaks Resistance

The long awaited break to the upside from the USD/CAD pair has finally been done. The Canadian dollar went through a disappointing news release on Friday when retail sales turned out to be negative 0.7% instead of the expected positive 0.3%.

The effect was a massive sell off of the pair which resulted in a rally in USD/CAD. The pair gained more than a cent going from 1.2477 to 1.2637 in less than a day.

Currently, it is still gravitating towards its highest point as the pair is now above the medium term resistance that started with the downfall in the beginning of May this year.

First bull target is seen at 1.2665. If bulls take this out, next one comes at 1.2780. Important news are scheduled this week, so paying attention to fundamentals is key.

Chart: USD/CAD H4