The USD/CAD pair continues to rise from the low of 1.3418, with the intraday bias remaining on the upside. This suggests that there is a possibility of retesting the resistance zone of 1.3946/76. A clear break above this area will confirm the continuation of the larger uptrend.
However, if the pair falls below the minor support level of 1.3837, the intraday bias may shift and we could see some consolidation taking place before another potential move higher.
Looking at the bigger picture, there seems to be a sideways consolidation pattern in place since the 2022 high of 1.3976. While there is a possibility of further consolidation or even a decline, it is likely that strong support will hold above the 1.2947 level, which has now turned into a support after acting as a resistance previously. This support level is expected to bring about a rebound in prices.
Overall, the overall trend remains bullish as the rise from the 2021 low of 1.2005 is still favored to resume at some point. A decisive break above the 1.3976 resistance level will open up the next target at the 61.8% projection level of 1.2401 to 1.3976 from 1.3418, which comes in at 1.4391. This indicates the potential for further gains in the USD/CAD pair in the near future.
