For the past year or so, the Canadian dollar or the Loonie as some traders call it has overtaken the USD. However, it appears that the USDCAD pair could already be bottoming.
As you can see from the chart above, the pair has already moved out of its year-long downtrend. Now, this could be taken as a good sign for the US dollar. Also, notice that from March of this year onwards, the pair seems to have been forming a double bottom pattern, which technical analysts consider as a bullish reversal formation. Moreover, a presence of another bullish pattern in the form of a pennant could catapult the USD back above par. However, it should considerably move above and break the 1.000 marker for it to have a chance of reaching its 1.0500 target (assuming it breaks out from the pennant). In case the 1.0000 price level holds and does not break then the USDCAD could continue to just drift sideways. Worse for the US dollar, the pair could even revisit its former lows at 0.9500 or even at 0.9400.
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