Forex Investment and Currency Trading

USD/CAD – Trend reversal above 1.0025 favours additionalgains to 1.0343.

USD/CAD posted a bullish trend reversal above a 1-year resistance trendline at 1.0025 on March 19. While the overbought state of the daily studies has stalled upward price momentum, valuation-driven pullbacks to support at 1.0099 and 0.9973 are expected to attract buying interest fora move to resistance at 1.0343. A daily close above this levelwould highlight 50% Fibonacci retracement of the February-November 2007 decline at 1.0468. Price target is located at 1.0335, with the bullish view valid while above 0.9861.