USDCAD Monthly Technical Forecast

The market has been in the process of mounting a significant rally out from the historic lows set by 0.9060 in November 2007. It now appears that a fresh higher low is in place by 1.1465 (November 2008 low) to be confirmed on a break back above 1.3020. The late February break of a multi-week triangle pattern strengthens constructive outlook with the breach of triangle resistance now projecting a measured move objective over the coming months back to challenge the 1.4000, 2004 highs. We would however recommend that longer-term bulls proceed with caution, with the monthly RSI now crossing above 70.