The USD/CAD rallied today and extended the upside movement as the US data have impressed today again. The rate increased even if the USDX has failed once again to stay above the 93.81 static resistance. I’ve said in the past days that technically the dollar index is expected to drop again on the short term and that only the fundamental factors could force it to make a valid breakout above the 93.81 obstacle. It looks like that the technical factors are stronger and could force the dollar index to decrease even more in the upcoming days.

The USD/CAD rallied and jumped above the median line (ML) of the major descending pitchfork and now is challenging the upper median line (uml) of the minor ascending pitchfork. Remains to see what will happen in the upcoming days because only a valid breakout will confirm a further increase.
The Loonie dropped sharply even if the Canadian Overnight Rate remained steady at 1.00%, matching expectations. The USD received support from the US data, the New Home Sales have increased from 561K to 667K, beating the 555K estimate, while the HPI rose by 0.7%, beating the 0.4% estimate. The Core Durable Goods Orders rose by 0.7%, exceeding the 0.5% estimate, while the Durable Goods Orders surged by 2.2%, more versus the 1.0% estimate.
Resistance cand be found at the 50% Fibonacci line (ascending dotted line).