USD/CAD continued to see a rapid rally higher, which has now eroded the 4 month downtrend, the 200 day moving averages and the lows from May to reach the 38.2% retracement at 1.0872.
We consider that a major bottom has been formed at 1.0622 and above 1.0960 will add weight to the idea that the 1.1238/78 resistance area, the 50% retracement and March peak, are likely to be reached (favoured). Intraday dips lower are expected to hold 1.0810/1.0775 for further gains. The longer term bull trend is entrenched while above the 1.0626 2012-2014 uptrend.
CB