USD/CAD: Short-Term Base Underway?
USD/CAD is trying to stabilise itself. However, the current short-term technical pattern (symmetrical triangle) still favours a bearish bias. A break of the initial resistance at 1.1078 (28/03/2014 high) is needed to improve the short-term technical structure. Another resistance stands at 1.1107 (27/03/2014 high, see also the 38.2% retracement). Supports can be found at 1.1001 (28/03/2014 low) and 1.0956.
In the longer term, the decisive break of the major resistance at 1.0870 validates a multi-year basing formation whose minimum upside potential is around 1.1910. The key resistance given by the 50% retracement (around 1.1236) of the decline from the September 2009 peak at 1.3065 remains thus far intact. A key support stands at 1.0911 (19/02/2014 low).