The USD/CAD has edged higher today and has managed to reach fresh new highs, has resumed the last day’s rally and looks determined to climb much higher in the coming period. Right now is pressuring an important static resistance and is approaching a strong dynamic resistance. The rate has continued to increase as the USDX has touched new highs, the index has increased as much as 101.75 level, has slipped lower in the last hours, but maintains a bullish perspective on the short term, could approach the 102.00 psychological level if will ignore the 101.78 minor resistance. A USDX’s further increase will force the dollar to increase further versus its rivals.
The Loonie has dropped sharply today because the Canadian data have come in worse than expected, the Retail Sales dropped by 0.5% in December, even if the traders have expected to see a 0.1% increase, the sales have decreased after three increasing months and have punished the CAD. Moreover the Core Retail Sales have dropped by 0.3%, the economists had expected to see a 0.8% growth, the indicator has continued to drop after the 0.1% decrease in the previous reading period.
The rate has edged higher and has managed to jump above the 1.3188 static resistance, is approaching the upper median line (uml) of the descending pitchfork, where he could find resistance again, a breakout from the descending pitchfork will attract even more buyers. Could increase further as long as is trading above the third warning line (WL3) of the former ascending pitchfork, we’ll have a larger rebound only if will have enough energy to jump and stabilize above the median line (ml) of the minor ascending pitchfork.
The major upside target remains at the upper median line (UML) of the major descending pitchfork, could approach and reach this upside target if the US dollar index will have enough energy to approach and reach the 103.83 previous high. However, a failure to escape from the minor descending pitchfork will send the rate down again, remains under pressure as long as is trading inside the descending pitchfork’s body.