- USD/CAD has broken above a key trendline, which could signal a trend reversal.
- If the pair holds this break and moves above 1.3520-25, it may continue to rise.
USD/CAD has broken through a trendline that has been guiding its downtrend since August. This happened after stronger-than-expected Canadian GDP data boosted the Canadian Dollar (CAD). The break suggests that the downtrend might be reversing, though more gains are needed to confirm this.
Technical Outlook:
- Trendline Break: The break was supported by a rise in the Relative Strength Index (RSI), indicating a potential buying opportunity.
- Key Levels: A close above 1.3520-25 could confirm the trend reversal and push USD/CAD up to 1.3593.
- Risk of Downtrend: If the break doesn’t hold and the price falls back below the trendline, the downtrend could continue, with targets at 1.3380 and 1.3222.
The coming sessions will be crucial in determining whether USD/CAD is entering a new uptrend or if the downtrend will resume.