The USD/CAD increased a little today and resumed the yesterday’s minor bullish candle. It remains to see what will happen in the upcoming period because the rate is trapped below some very important resistance levels.
The pair is under some selling pressure and could drop if the dollar index will drop as well. USDX as decreased again in the last week and now is pressuring a dynamic support,a valid breakdown will open the door for more declines in the upcoming period.
The USDX is also pressuring the 90.00 psychological level, will decrease further if will stabilize below this level.
It will be very important to see what will happen after the US data will be sent to the public, the figures will shake the currency market. The US CPI could increase by 0.2% in February, less versus the 0.5% growth in the former reading period, while the Core CPI may increase by 0.2% as well versus a 0.3% growth in the previous reporting period.
The BOC Gov Poloz will speak in the afternoon and could bring life on the USD/CAD, the US NFIB Small Business Index will be released as well and is expected to increase from 106.9 to 107.1 points.
You can see that the rate has made a false breakdown below the upper median line (uml) of the minor ascending pitchfork and now tries to climb towards the 1.2917 static resistance again. The upwards movement will resume only if the rate will have enough directional energy to jump and close above the UML of the major descending pitchfork.
Resistance can be found at the outside sliding line (sl) of the minor ascending pitchfork, a failure to reach the mentioned resistance levels will signal an exhaustion and a potential drop. Price moves somehow sideways on the short term, but a breakout above the 1.2917 will confirm a further increase.