The USDCAD market on the Daily time frame had a short but powerful down trend until a last lower bottom was reached on 21 October at 1.22878. After the lower bottom, the bulls started gathering and the price broke through the 15 Simple Moving Average with a critical resistance level forming when a higher top was formed on 27 October at 1.24319. During the same session the bears pulled the market lower but a support level at 1.23001 kept them at bay. On 28 October bulls gathered in even greater numbers than before, signalling a possible change in trend.
The USDCAD broke through the critical resistance level at 1.24319 on 3 November with the Momentum Oscillator confirming the bullish trend by breaking through the baseline into bullish territory.
Three possible price targets were considered from there. Attaching the Fibonacci tool to the top at 1.24319 and dragging it to the bottom of the support level at 1.23001, the following targets was calculated. The first target was estimated at 1.25134 (161.8%). The second price target could be at 1.26452 (261.8%) and the third and final target might be anticipated at 1.28584 (423.6%).
If the support level at 1.23001 is broken, the above scenario is annulled and risk management is paramount. As long as the bulls continue to lead and demand overcomes supply, the outlook for USDCAD on the Daily time frame will remain bullish.