The USD/CAD has rallied and has managed to hit new highs, could consolidate the latest gains in the upcoming days. Has edged higher aggressively in the last two days and has managed to jump above some important resistance level, could increase further if the USDX retreat is completed, remains to see what will happen tomorrow as the economic calendar is filled with important economic data from the US and from Canada.

You’ll have to be careful tomorrow as the price will be moved by the fundamental factors in the afternoon, most likely we’ll have some volatility.

Price has decreased a little despite the USDX’s rebound, the retreat was somehow expected after the yesterday’s impressive rally.  Canada is to release the inflation data tomorrow, the CPI could increase by 0.4%, more versus the 0.2% in the previous reading period. On the other hand, the dollar needs support from the United States economy to be able to increase further, the Existing Home Sales could increase from 5.48M to 5.61M, the Flash Services PMI and the Flash Manufacturing PMI could bring life on this air as well, will be better to keep an eye on the economic calendar.

Price has increased sharply and has finally managed to break above the outside sliding line (descending dotted line from above the UML), has jumped above the 1.3456 static resistance, signalling that the bulls are il full control and could lead the rate towards new highs.

Could come to test the confluence area formed at the intersection between the wl3 with the sliding line before will increase further, the next major upside target remains at the 50% retracement level, could be attracted also by the upper median line (uml) of the minor ascending pitchfork.

The upside movement will resume if the price will escape from the sideways movement, you can see that has movement sideways between the 23.6%  and the 50% retracement levels, the failure to close below the 38.2% retracement level is signalling a breakout from this range movement.