The USD/CAD has extended the latest gains and has managed some major resistance level, is very important to see what will happen in the upcoming days. Price has jumped above two major resistance levels, but has failed to stay there and now has retreated as the dollar was weakened by the USDX’s drop, the index has fallen below the 99.00 psychological level. The dollar index could approach the  98.54 static support these days, where he could find support again, a further drop will send the dollar much lower versus its rivals.

The USDX has touched a dynamic support, only a bounce back will send the dollar higher again, the greenback needs strong support from the US economy. The dollar has dropped in the afternoon, even if the US data have come in mixed, has taken a hit from the CB Consumer Confidence, which has dropped unexpectedly lower, was reported at 120.3 in April, much lower versus the 123.7 estimate and versus the 124.9 in the previous reporting period. The rate will be driven by the fundamental factors tomorrow, Canada is to release high impact data which will shake the pair. The Canadian retail sales report should bring some volatility on this pair, so you should be careful.

Price has increased sharply and has resumed the bullish momentum, has managed to jump above the 50% retracement level and above the upper median line (uml) of the minor ascending pitchfork. The 50% retracement level represents a  major resistance level, you can see that has rejected the price in the last breakout attempts, so we have to patient to see what will happen this time.

The long term upside movement will resume only if will have a valid breakout above the mentioned resistance levels, a fake out will send the rate much lower again, a failure to close above the upper median line (uml) of the minor ascending pitchfork will signal an exhaustion, another leg lower will be favored in this situation. Maybe the rate will come down again to try to recapture more directional energy before will try to jump much higher.