USDCAD is attempting to break outside the Ichimoku cloud. Technical indicators suggest that further upside momentum is possible. RSI is above 50 in bullish territory and the tenkan-sen and kijun-sen lines are pointing up.
After a corrective dip from the March 18 high of 1.2834 to 1.1919, the pair rallied to 1.2491 on Wednesday. There is scope to retest the high of 1.2834. We would need to see a decisive break above this to see a resumption of the longer term uptend that has been in place since the 2012 low of 0.9630. Such a move would target 1.3063 (high in 2009).
Meanwhile a break below the low of 1.1919 would extend the fall to the 38.2% Fibonacci retracement level of the upleg from 0.9630 to 1.2834. This level comes in at 1.1611.