USDCAD - Double bottom

USDCAD (1H) - short term bullish bias

The US dollar bounced back from the July low near 1.3030-1.3040, completing a 13-week-long M-shaped pattern. The rebound is likely to be fuelled by a combination of profit-taking and buying the dip. On the hourly chart, the RSI divergence indicated that the selling pressure was waning. The ensued MA cross and successive breaks above 1.3090 then 1.3110 confirmed the bullish directional bias. As the RSI suggests an over-bought situation, we may expect a pullback before trend-followers jump in.

Key support: 1.3080
Key resistance: 1.3200