The break seen on 4-hr chart has created room for an upside rally to 1.3597 levels. On the way higher there are couple of strong resistance levels as follows
1.3236 (weekly 50-MA)
1.3312 (38.2% of 1.4690-1.2461)
1.3457 (Sep 29 high)
1.3575 (50% of 1.4690-1.2461)
invalidation is seen only if prices fall back below neckline support.
Note that repeated failure at any of these levels could derail the rally to inverse head and shoulder breakout level of 1.3597.
Food for thought - We have a big break on USD/CAD at a time when talk of Fed rate hike in June has gathered pace and Brent and WTI are retreating.
Is the break on USD/CAD indicating June Fed rate hike or noteworthy correction in oil or both. As mentioned in a post earlier today... brent has confirmed price-RSI divergence. break in USD/CAd , in a way, adds credence to Fed interest rate hawks and brent oil chart.