FXstreet.com (Barcelona) - The USD/CAD has broken the triangle it has been trading for the last two months, and the pair advances north to test 1.2840 resistance level. Once above here, the pair will get on its way to long term resistance at 1.3015 (Oct 27 high).

According to Franco Shao, tchnical analyst at ForexCycle.com, the USD could reach 1.3500 zone: USDCAD breaks out of the triangle pattern on daily chart and is testing the 1.2765 resistance. A break above this level will signal further rally to test 1.3015 long term key resistance. Above this level will indicate that the long term uptrend from 0.9056 (Nov 7, 2007 low) has resumed and the next target is expected to 1.3500 zone.

On the longer term, Shao observes the USD at levels around 1.40: For long term analysis, USDCAD remains in bullish movement, and the price action from 1.3015 is treated as consolidation of long term up trend. Further rise towards 1.4000 to reach the next cycle top on monthly chart is expected.