USD/CAD Analysis (August 5)

We were considering a bullish reversal on the pair for a few days and we think that everything is now in place to allow a continuation to the upside.
First of all, we did see a break above 0,97 which allowed a test of 0,98 corresponding to the daily 20 moving average.
From a techincal stand point, the weekly rally is carving out a nice double bottom formation on the weekly chart which will be validated with a break above 0,99 key resistance (weekly bollinger band and June high).
We will wait for a clear break above 0,98 to confirm the bullish outlook as it will certainly offer a great resistance.