- USD/CAD bulls are on the approach to the 1.3470s.
- A break of 1.3480 would potentially pull in further demand.
The Canadian Dollar strengthened against its US counterpart on Wednesday as risk appetite rose and investors raised bets on another interest rate hike by the Bank of Canada. However, there are bullish tendencies on the charts as the following analysis will illustrate:
USD/CAD daily charts
Firstly, the double bottom is a bullish scenario on the daily chart. While the market is coiling and the breakout of the triangle could go either way, there appears to be support as follows:
The correction of the prior bullish impulse into the 50% mean reversion area is decelerating and could lead to a bullish continuation.
USD/CAD H4 chart, the bullish scenario
On the 4-hour chart, we see that the price is on the approach to the 1.3470s and a break of 1.3480 would potentially pull in further demand.
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