USD/CAD may rise 37 - 53 pips

Our pivot point is at 1.3827.

Our preference

The upside prevails as long as 1.3827 is support.

Alternative scenario

The downside breakout of 1.3827 would call for 1.3800 and 1.3784.

Comment

The RSI is above 70. It could mean either that the pair is in a lasting uptrend or just overbought and therefore bound to correct (look for bearish divergence in this case). The MACD is positive and above its signal line. The configuration is positive. Moreover, the price is above its 20 and 50 period moving average (respectively at 1.3830 and 1.3817).

Supports and resistances

1.3946 **

1.3929 *

1.3913 **

1.3897

1.3860 last

1.3838

1.3827 **

1.3800 *

1.3784 **

Number of asterisks represents the strength of support and resistance levels.