Building a base.
• USD/CAD is currently consolidating after failing to clear 1.4000 handle. Support is located at 1.3848, which break would trigger a sharp move to key support stands at 1.3225 (12/11/2015 low). Hourly (and long-term) resistance holds at 1.4001. Expected to keep going this consolidating phase.
• In the longer term, the break of the key resistance at 1.3065 (13/03/2009 high) has indicated increasing buying pressures, which favours further medium-term strengthening. Strong resistance is given at 1.4002 (18/05/2004). Support can be found at 1.2832 (15/10/2015 low) then 1.1731 (06/01/2015 low).