USD/CAD Price Analysis: Bulls taking control and eye significant correction

Highlight

• USD/CAD bulls 38.2% ratio as first stop.

• Beyond daily resistance, bulls eye the1.3560s.

USD/CAD is been in the hands of the bulls at the start of the week while the yield on benchmark government debt climbed and despite a surprise in the US economic data front. Nevertheless, the technical outlook remains bullish as for the following analysis:

USD/CAD daily chart

The market swept the equal lows and subsequently, bulls moved in at a discount at the end of the three-day drop. This has occurred while an M-formation has been left on the charts. The bulls look to the Fibonacci scale whereby the 38.2% ratio meets with the prior structure and offers a compelling target for the bulls.

USD/CAD H1 chart

On the hourly chart, The price is sideways and bulls need to get above 1.3460 to break the resistance structure. In doing so, there are prospects of a move all the way through the 38.2% ratio into the 1.3560s.