USD/CAD Disappointed All Expectations for a Drop and Started Climbing towards 1.3100

The news that came out yesterday that the US Federal Funds Rate would be kept as kept as it is, together with the hint dropped by the FED Chair Janet Yellen that we can expect a rate hike in July did not have a negative influence on the US dollar, on the contrary, it made it soar.

At this point it is more than obvious what is the USD/CAD next target – the pair is climbing towards the resistance at 1.3130, which can be seen on the weekly time frame.

What is more, after yesterday’s news the pair managed to break above the trend channel in which it had been moving and started climbing unwaveringly towards its target. If it does manage to reach it then the double bottom that can be seen on the four-hour and daily time frames would be a signal for a 500 pips move to the upside.