USD/CAD increased and resumed the bullish momentum. Price is pressuring a dynamic resistance but looks determined to reach fresh new highs after the poor Canadian data and after the good US figures.

I’ve said in the previous days that the rate should increase further if the USDX will have enough directional energy to increase further.

Price increased even if the USDX has decreased in the last hours, it could come back down again to test and retest a dynamic support before will jump much higher. Personally, I’m still waiting to see a confirmation on the USDX that the rate will increase further in the upcoming period, till then it is still under pressure and could drop sharply again.

The greenback received support from the United States Unemployment Claims, which have dropped from 229K to 222K in the previous week, even if the economists have expected to see an increase to 230K. The US is to release the CB Leading Index, which is expected to increase by 0.7%, more versus te 0.6% in the previous reading report.

The Loonie should drop as the Retail Sales have dropped by 0.8% in December, even if the economists have forecasted a 0.0% growth, while the Core Retail Sales dropped by 1.8%, despite the 0.1% estimate and after the 1.7% growth in the previous reading period. The Corporate Profits dropped by 1.9%.

The rate increased and passed above the 1.2685 former high, but it could find temporary resistance at the second warning parallel line (SL2) of the major descending pitchfork. I’ve said that the rate could increase further after the retest of the median line (ml) of the red ascending pitchfork. A valid breakout above the SL2 will send the rate towards the 1.2917 static resistance and towards the upper median line (UML) of the major blue descending pitchfork.