USD/CAD Forecast: Aiming For 1.30?

The tables may have turned in favor of the dollar bulls, suggests the USD/CAD technical charts.

The currency pair recovered from the low of 1.2680 yesterday on the back of weakness in oil prices. The pair jumped to 1.2771 and currently trades at 1.2760 levels.

Weekly chart

Source: Netdania

The ongoing 4-week long consolidation has allowed the 10-week MA to do a 'catch up' job. Currently, the moving average stands at 1.2769 and carries a steep upward slope (favors further upside).

Also, the bears have failed for the last three weeks to pierce the support of 1.2672 (38.2% Fib R of 2011 low - 2016 high) and now the spot has moved above 1.2723 (38.2% Fib R of Apr-Sep drop). So, the spot looks set to gain altitude.

Still, I would want to see the pair close today or end the current week above 1.2778 (Aug. 2017 high). Such a move would open doors for 1.2980 (inverse head and shoulders neckline).

On the way higher, the spot would run into resistance at 1.2810 (channel resistance) and also the resistance offered by the trendline sloping upwards from the Sep. 15 low and Oct. 19 low.

Daily chart

The above chart shows-

The spot is more likely to cut through resistance at 1.2810 and the trendline resistance as indicated by the repeated failure on the part of the bears to breach 1.2672 (38.2% Fib R of 2011 low - 2016 high) and the bottoming out of and the bullish crossover between the 50-day MA and the 100-day MA.
1-2 week view: Sideways to positive

1-month view: Positive, rally to 1.2980-1.30 likely

Bullish invalidation - A close below 1.2672 (38.2% Fib R of 2011 low - 2016 high) on the dailies would abort the bullish view, while a move beneath 1.2413 (Jul. 26 low) would confirm the bullish-to-bearish trend change.