USD/CAD rallied today and resumed the yesterday’s bullish candle. Price jumped above two important upside targets but remains to see if will really have enough energy to make a valid breakout and to resume the bullish momentum. The rate could increase further as the US dollar received a helping hand from the Unemployment Claims. The Canadian data have come in better as well earlier, but the USD is stronger as the USDX extended the upside movement.
USD/CAD moves in range on the short term, it has come down to test and retest some very important support levels and has managed to stay in the buyer’s territory.
We may have a buying opportunity very soon if the USDX will increase further and will close above the 93.81 static resistance. The USD received support from the United States Initial Claims, which have dropped from 238K to 236K in the previous week and have come much below the 239K estimate. Unfortunately, the Challenger Job Cut was reported at 30.1%, much above the -3.0% in the former reading period, but the greenback wasn’t too impressed. The US Consumer Credit will be released later and is expected to drop from 20.8B to 17.4B.
The Loonie wasn’t inspired by the Building Permits report, the indicator increased by 3.5% beating the 1.7% estimate, we’ll see what will happen after the Ivey PMI release, it is expected to drop to 62.7 points, from 63.8 points in the former reading period.
The rate jumped above the upper median line (uml) of the minor red ascending pitchfork and above the 1.2803 static resistance. It has climbed above the sliding line (sl) of the blue descending pitchfork as well, but only a valid breakout above the sliding parallel line (SL) of the major red descending pitchfork will signal a further increase. The major upside targets remain at the UML of red descending pitchfork and higher at the upper median line (uml) of the blue descending pitchfork. A rejection from the SL will send the rate down on the short term again.