USDCAD recently reversed up from the support area lying between the key support level 1.39550 (low of the pervious wave (b)), lower daily Bollinger Band and the 38.2% Fibonacci retracement of the pervious upward impulse from January. The upward reversal from this support stopped the pervious short-term impulse wave (i).. Given the oversold reading on the daily Stochastic indicator – USDCAD is likely to rise further toward the next resistance level 1.42000 – the breakout of which can lead to further gains toward the next resistance level 1.43000 (which stopped the earlier wave (b)).
