USDCAD is sharply higher today and the pair is nearing the highs of 2013 which are currently around 1.0420. Just above that, the 2012 highs and long-term bullish channel resistance converge ahead of the 1.0450 level. Weekly closes have been contained within the long-term bull channel since mid-August of 2012. If the channel continues to contain prices, then the upside may be limited and the pair may soon correct lower within the upwards trend. We highlight some key long term technical levels (Fibonacci retracements are measured from the 2012 highs to lows):

• 1.0440/50 – 2012 highs and channel resistance
• 1.0130/40 – 61.8% Fibonacci retracement & 200-week SMA
• 1.0040/50 – 50% retracement, 55-week & 100-week SMA’s