USDCAD Technical Analysis for May 17, 2013

The loonie has had a very bullish day, driven by weak economic data in Canada that were released during the day.

The loonie rose to 1.0300 psychological level, finding strong resistance there, after having formed a lower high pattern below 1.0200 level. Now, the USDCAD has an important challenge is to try to break the resistance level 1.0322, if it breaks, it is very possible that the loonie can climb to the next level at 1.0400. For next week, we could see that the USDCAD make a consolidation in low range, to form a lower high pattern before trying to break that resistance, but there is also the possibility of forming a double top pattern in the medium term due economic instability that is presenting Canada and the United States respectively. Be cautious with this pair, because at low charts, is extremely overbought.

The MACD indicator is positive territory, supporting a bullish outlook in the medium term for the USDCAD.

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