The USD/CAD pair is appearing increasingly bullish as the US economy continues to post strong economic data and oil prices remain under pressure.
USD/CAD technical analysis indicates that the pair still has more scope to move to the upside while price trades above the 1.3200 level.
USD/CAD medium-term price trend
Broad-based US dollar strength and a significant drop in oil prices have seen the USD/CAD pair advancing to its highest level since October 2019.
USD/CAD technical analysis shows that the pair has a strong bullish bias while trading above the 1.3200 resistance level.
The daily chart shows the existence of a large rising price channel, with the USD/CAD recently breaking back inside the channel.
As long as price trades above the 1.3200 level the USD/CAD pair has the potential to rally towards the top of the price channel, around the 1.3800 level.
Traders should note that key technical resistance over the medium term is currently located at the 1.3440 and 1.3580 level.
USD/CAD short-term price trend
USD/CAD analysis shows that the pair is bullish over the short term while price trades above the 1.3120 level.
The four-hour time frame shows that the latest advance in the USD/CAD pair has created a large bullish reversal pattern.
At present, the neckline of the inverted head-and-shoulders pattern is located around the 1.3330 level.
Looking at the upside potential of the inverted head-and-shoulders pattern, it could take the USD/CAD pair towards the 1.3700 level.
Key short-term technical support is currently located at the 1.3200 and 1.3170 levels, while key resistance is found at the 1.3330 and 1.3388 levels.
USD/CAD technical summary
USD/CAD analysis shows that the pair is growing increasingly bullish while trading above the 1.3200 level. Gains above the 1.3330 level could provoke the next strong upside rally.