USD/CAD Analysis (August 20)

The pair continues to consolidate (2 weeks range) after its bounce on top of 0,94 which resulted in a 500 pips rally and a test of parity. We consider that a major bottom is now in place.
We expect a resumption of the upside move soon for another test of parity before a continuation further up. 0,9940 is the immediate resistance to clear to allow this development.
Only a break of the 0,9780 level (38% fib retracement) would delay this bullish scenario and expose next key support at 0,97 corresponding to the 50% fib retracement.