USDCAD buying opportunity | 21 Nov 2022

USDCAD saw a downtrend until it came to test the 1.32200 support zone, where we also saw a double bottom formation with a break above its neckline at 1.33200. Price rebounded, only to tap the 1.33200 resistance zone, and proceeded to oscillate between the two zones between 14-17 November. Finally on 17 November, weak Canadian inflation and buoyant US retail sales data provided a strong fundamental upside momentum to USDCAD, which pushed prices past the 1.33200 resistance turned support zone. We forecast price to continue along the bullish trend to the next resistance zone at 1.35500, which coincides with the 100% Fibonacci retracement level. There is a buying opportunity when price approaches the lower bound of the bullish channel. Prices are lying above the Ichimoku cloud as well, supporting our bullish forecast.