06 July 2016 at 6:36 GMT
Steve Lucas of 3cAnalysis says that a sequence of five lower daily highs has been ended on Tuesday and that the buying has come from close to a 62% pullback to the gains posted since the last two-week low.
Lucas points to that the improvement has taken prices above their 13-day average rate and that crude oil has put in a bearish reversal protecting a falling trend of lower daily highs and taking prices back below $50/b.
On this account Steve Lucas is looking to buy USDCAD on the open and at 1.2960 with a stop loss at 1.2910 which is the 13-day average rate.
Lucas' targets are 1.3039, the 100 day average and 1.3121, June’s top.