USDCAD Breaks April High: What's Next?
Solid ECN — In this evening's trading session, The U.S. Dollar surpassed April's highest price point, the 1.3647 mark against the Canadian dollar. This uptick in momentum has led the RSI indicator to step into the overbought zone, indicating that the USDCAD pair might enter a short-term consolidation.
From a technical standpoint, this breakout paved the road to the 78.6% Fibonacci resistance. However, entering the bull market is not recommended when the market is saturated from buying pressure. That said, if the price returns to the 1.364 area followed by the 61.8%, it provides a decent entry point to join the buyers.