USDCAD has maintained a steady uptrend since bouncing off a low of 1.0619 on July 3rd. Breaking above the 200-day moving average and the Ichimoku cloud strengthened the upside momentum. The thickening of the cloud and the rising tenkan-sen and kijun-sen lines are supporting the bullish bias.
The pair hit a 5-year high of 1.1465 on November 5th. It has since pulled back to find support at the cloud. The area between 1.1190 and 1.1230 is an important support zone. Prices are currently capped by the tenkan-sen and kijun-sen lines which are colliding at 1.1292. A break above this level would open the way to target the 5-year high of 1.1465.
The overall outlook is bullish but in the near term the pair is correcting as it pulls back from the 5-year high.