The USD/CAD has edged higher and has managed to hit new highs, is trading in the green and looks determined to touch some important resistance levels. Has jumped much higher even if the United States data have come in mixed, while the Canadian figures have come in worse than expected and versus the last reporting period.
The USDX has managed to increase and now is pressuring the 99.93 static resistance, has found strong support at a dynamic line, a further increase will send the greenback much higher.
Technically, the USD/CAD is expected to increase further after a crucial breakout, has finally managed to take out a dynamic resistance, but we still need other confirmations that will increase in the upcoming weeks and months because is trapped in a sideways movement.
The greenback has received a helping hand also from the Existing Home Sales, the indicator has increased from 5.47M to 5.71M in March, beating the 5.61M estimate, has reached the highest level since May 2010. Unfortunately the Flash Manufacturing PMI dropped from 53.3 points to 52.8 points, even if the traders have expected to see an increase to 53.9 points, while the Flash Services PMI decreased from 52.8 to 52.5 points, despite the 53.7 estimate, the expansion has slowed down in the manufacturing and services sectors, but the USD wasn’t too impressed.
The Loonie has taken a hit from the Canadian CPI, which has increased only by 0.2%, less versus the 0.4% estimate.
Price has increased significantly and has erased the yesterday’s losses, has climbed as much as 1.3525 level, but has failed to hit the 1.3534 static resistance, could still reach this level as the pair is bullish after the aggressive breakout above the sliding line (descending dotted line). Has decreased a little to test and retest the sliding line, the 1.3454 support (resistance has turned into support) and the third warning line (WL3), but has failed, signalling that the bulls are too strong and will lead the rate much higher in the upcoming days. The next upside target will be at the 50% retracement level, could be attracted also the upper median line (UML) of the ascending pitchfork.