FBS: USD/CAD growth prospects
USD/CAD jumped by more than 100 pips on Wednesday, testing the 1.0390 resistance. On Thursday the pair extends the upside after a short-term correction, testing the levels above 1.0400.
The current technical and fundamental background makes us bullish on the pair in the medium term. However, the 1.0420 level could act as a resistance in the coming days, slowing the upside. MACD divergence on the H1 chart is also warning about the possible bearish correction in the coming days. Losses should be limited by the 1.0330 area.
Chart. Daily USD/CAD