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According to Joyner, the pair has been trending higher most of the year due to the weaker oil prices and growing expectations that the US Federal Reserve will hike interest rates. The daily chart shows how the pair back in September tested 1.34, the highest in more than 10 years, before retracing back significantly lower.

Since then USDCAD has regained its strong upwards momentum, Joyner says, moving back up to retest 1.34 several times, but failing to post a daily close above it.

Looking at the four hour chart, Joyner says the price action has formed a bullish rising wedge formation as it consolidates below resistance. Following last week’s better than expected US employment data, he believes that the fundamentals could now be in place to finally support a decisive break above 1.34. If this happens, Joyner will look to enter a long position, expecting to see a sustained move higher over the next few days.