The USD/CAD increased and resumed the yesterday’s minor bullish candle. Price is pressuring a dynamic resistance and looks determined to breakout from the medium term down channel. Remains to see what will happen in the afternoon as Canada is to release high impact data that could shake the price. Technically is somehow expected to climb much higher after the minor consolidation, but the fundamental factors will take the lead in the afternoon, remains to see the direction.

Looks like that the rate is developing a minor chart pattern, technically this should be a continuation pattern. The USD increased significantly versus all its rivals as the USDX has managed to erase the yesterday’s losses and now climbs towards the 93.81 resistance level.

The failure to approach and reach the 92.49 static resistance level signaled that the rate could try to breakout above the 93.81 and to confirm the Inverse Head and Shoulders pattern.

The Canadian CPI may increase by 0.3% in the previous month, more versus the 0.1% in the former reading period, while the Core Retail Sales could increase by 0.3%, beating the 0.2% growth in the former reading period. The Retail Sales could increase by 0.5%, more versus the 0.4% in the former reading period. The Core CPI, Common CPI, Median CPI and the Trimmed CPI will be released as well.

Price continues to pressure the upside line of the down channel, a valid breakout will send the rate towards the 1.2655 horizontal resistance and towards the median line (ML) of the major descending pitchfork. I’ve said in the previous weeks that the rate is expected to take out the upside line of the descending channel if will touch it. So technically, the breakout is favored at this moment, only the fundamental factors could turn it to the downside again.

Is somehow expected to climb much higher after the retest of the 1.2460 horizontal support and after the failure to retest the median line (ml) of the blue ascending pitchfork. The near-term upside target will be at the 1.2655 horizontal resistance.