USD/CAD: upside potential
By: Dima Chernovolov
• USD/CAD approaches resistance level 1.2500
• Likely to rise further to 1.2750 and 1.3000
USD/CAD has been rising sharply in the last few months inside the extended intermediate impulse wave (3) which started in September of 2012. USD/CAD earlier broke out of the two consecutive progressively-steeper weekly up channels (as you can see from the weekly USD/CAD chart below) – signaling the intensification of the bullish pressure on this currency pair.
USD/CAD last weekly broke above the resistance level 1.2000 – which accelerated the active minor impulse wave 5. The pair is likely to rise further toward the next resistance level 1.2500. If the price breaks above 1.2500, USD/CAD can be expected to rise to the next resistance levels 1.2750 and ultimately – toward 1.3000 (forecast price for the completion of wave (3)). Due to the presence of the strong resistance zone between 1.2750 and 1.3000 – expect sideways volatility when approaching these price levels.