USDCAD Jan 28 to Feb 01 Outlook

Recap
Consolidation above Y-0 not only gave us a rally to retest Y+1, it also gave us a clean breakout leading to a squeeze to Y+3. Closed the week near Y+1 and above midpoint.

Outlook
The upside breakout was strongly correlated to the selloff in gold.

The breakout has breached multiple weekly resistance hence the long term down trend is now broken. This does not translate into a strong rally automatically because it will take time to build a better base before it can go higher.

Next week as long as Y+5 is putting a cap on the up swing, consolidation around B+1 is expected.