USD/CAD Bullish Breakout Is Imminent Technical Analysis

USD/CAD is about to test a key technical level that will decide whether it makes a bullish breakout or not. USD/CAD is about to break a trendline that has been drawn by joining the lows dating back to September 2012 some 2 years back. So this trendline is pretty strong and you need to give its break a lot of importance.

The Canadian currency broke out of a six-week range June 20 after a report showed the nation’s consumer prices rose beyond the central bank’s target for the first time in more than two years, George Davis, chief technical analyst at the bank’s RBC Capital Markets unit, wrote in a client note. If it closes today stronger than C$1.0734, that will clear the way to advance to a trendline at C$1.0635, Davis wrote.