Forex Technical Update

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USD/CAD 4H Chart 9:51AM EDT

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Risk aversion is boosting the USD and pushing down commodity crosses. The USD/CAD is breaking away from its recent sideways action. The sideways action was consolidation after a breakout above a declining wedge, so today's bullish price action is a confirmation that the breakout is following through.

It is now trying to break above this week's high at 1.0316. If the USD/CAD falls below the 1.0265 pivot, it would take away the edge for the bullish outlook.

Otherwise, holding above the 1.03 handle would be a clear sign of the market heading back toward the June high near 1.0440.

In the 1H chart, we see that the 1.0316 level has not been broken yet. Again, if the 1.0266 pivot holds, and the 1H RSI can hold above 40, preferably above 50, we should anticipate a rally afterwards to break 1.0316.

The first near-term resistance is around 1.0350, seen as a pivot in the 4H chart.

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Fan Yang CMT is a forex trader, analyst, educator and Chief Technical Strategist for FXTimes - provider of Forex News, Analysis, Education, Videos, Charts, and other trading resources.

Information and opinions contained in this report are for educational purposes only and do not constitute an investment advice. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness. FXTimes will not accept liability for any loss of profit or damage which may arise directly, indirectly or consequently from use of or reliance on the trading set-ups or any accompanying chart analysis.