The currency pair increased significantly and jumped above a very important resistance level. A valid breakout will signal a further increase towards fresh new highs. I’ve said in the previous days that we may have a breakout after a false breakdown.

Price jumped higher on the mixed US data, the USDX has climbed higher and has pushed the USD higher versus all its rivals on the short term.  A USDX’s further increase will help the USD to dominate the currency market on the short term.

The USD/CAD is strongly bullish on the short-term and should climb towards fresh new highs as long as the USDX will increase as well. The breakout needs confirmation, so we may see the USD/CAD retreating a little in the upcoming days, it could come back to test and retest the broken resistance levels.

The Canadian ADP Non-Farm Employment Change was reported at 32.7K, much above the 10.7K in the former reading period. The USD has received a helping hand from the US Unemployment Claims, which were reported at 226K in the previous week, less versus the 227K estimate and versus the 230K jobs in the previous reporting period. The Empire State Manufacturing Index increased to 22.5 points, from 13.1 points, exceeding the 14.9 estimate, while the Philly Fed Manufacturing Index was reported at 22.3 points, less versus the 23.1 estimate ad versus the 25.8 in the former reading period.

Price has finally jumped above the upper median line (UML) of the major descending pitchfork and now it should move towards the 150% Fibonacci line (descending dotted line). Price has also managed to breakout above the sliding line (sl) of the red ascending pitchfork. I’ve said that the rate will continue to increase only after a valid breakout above the mentioned resistance levels, so we may see the rate down again before it will reach the 150% Fibonacci line.