USD/CAD finally reached the resistance at 1.2870, which is (EMA)89 on the four hour time frame. The pair could bounce off of it, but if it breaks above it next target is at 1.2930, which is the middle line of the Bollinger Bands indicator on the daily time frame.
CAD weakened quite a bit on the EIA news and USDCAD is up 72 pip, if the oil goes up for the day CAD is likely to retreat some, but the eyes are on the Feds in 2.5 hour. Any surprise can give big movement in either direction.
USD/CAD almost reached 1.31 before it rebounded back to 1.2900 and today it broke below that level. On the daily time frame there's a great doji candlestick, so I expect a further move to the downside towards 1.2800.
Although USD/CAD is not a EUR or GBP-related pair Brexit still had a big effect on it and caused a big move to the upside. We'll have to wait until next week to find out whether it's temporary or if it's the beginning of a reversal.
I am starting to doubt that the pair will break above 1.3100 right away, it has been testing it for a while now and it still hasn't been able to break above that level. We might see a move to the downside first, before it makes another attempt to break above the resistance.
I am looking at the four-hour time frame and I am questioning whether that was the end of the move to the downside. The pair reached 1.2830, formed a doji and a hammer candlestick above the support there and is now moving up again. I expected a bigger drop.
That wasn't the end of the move the downside, thankfully, because the pair found resistance at 1.3015, which is the middle line of the Bollinger Bands indicator on the four-hour time frame and started falling again. For the moment it's testing the support at 1.2880 and I think that if it breaks below that level next target will be 1.2700.