Breaking above the resistance at 1.3070 would restart the underlying bullish momentum
From a technical analysis perspective, we can see USD/CAD reluctant to break above its year high at 1.3070 and its 200 week moving average. The exchange rate has tested these resistances three times in less than two months and increasingly rapidly (1 month between the first two rallies and two weeks between the last two), which is a sign of further buying pressure. more important.
A crossing of this resistance therefore currently seems the most probable, but it will be preferable to wait for this signal to reposition oneself for the purchase and aim for new annual highs. Breaking above the resistance at 1.3070 would technically pave the way for a continuation of the bottom uptrend to the 2020 summer high at around 1.34.
In the meantime, it’s best to stay neutral on USD/CAD as the US jobs report or other releases like corporate earnings next week could reassure investors about the state of the economy ahead. short term.