The 4 hour USD/CAD Chart shows the price is hugging the declining support line. The price has been range trading between the support and resistance since the end of January. However, price looks to be making a continuation upwards to continue with its long term bullish trend.
The price is currently sitting on the support line which implies the price will bounce upwards and carry on with its trend. We get reassurance from the daily chart (Below) which shows the price is sitting just above the 200 EMA, which is known to act as a support mark. In addition to this, the RSI is looking very close to the oversold position therefore a continuation upwards seems very likely.
For now we will have to wait for bullish confirmation before entering into a long position. If we did enter into a long position we would look to initially target the previous high set back at the beginning of the year at 1.468. If the trend still looks strong at this point it is possible that the pairing could target a high set back in 2001/2002 at 1.622.
