USD/CAD analysis (July 12, 2011)

It has been a few days we were poiting out the possibility of a long term reversal pattern (cup&handle) on the pair for a possible long term shift in the trend.
The latest price actions and the recent change in the momentum are confirming this outlook.

USD/CAD: daily chart

The pair has confirmed a bullish scenario with a break back above 0,97 (last week high) and is now testing the daily 20 moving average.

We think that a material might be in place on top of 0,9550 for a continuation to the upside. Next target is former resistance level at 0,98 but 0,99 is a more obvious objective (daily bollinger band).