The USD/CAD pair moves somehow sideways in the short term trying to accumulate more bullish energy before jumping higher. In the short term, the pair was expected to develop an upside reversal after escaping from a Falling Wedge pattern.
The pair could jump higher if the Dollar Index resumes today’s growth. The index has escaped from a down channel signaling that the downside movement is over. The USD/CAD has dropped a little today also because the Canadian retail sales data have come in better than expected on Friday. On the other hand, the US figures have come in mixed on Friday.
Tomorrow, the US CB Consumer Confidence could have a strong impact on the USD/CAD. Better than expected data could help the greenback to appreciate versus its rivals.
USD/CAD Technical Analysis!
The USD/CAD pair could try to climb higher if it makes a valid breakout from the minor down channel. 1.2383 is seen as a first upside target. A valid breakout above it, a new higher high could really announce a strong growth in the short term.
As you can see on the 15 min chart, the pair failed to stabilize below the weekly pivot point (1.2354) signaling that the upside pressure is high. Technically, as long as it is above the weekly pivot, the USD/CAD pair could still increase.
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