The USD/CAD has increased significantly and has managed to resume the yesterday’s impressive rally, has reached new highs and looks motivated to approach some important upside targets in the coming days. The pair was driven higher by the fundamental factors, has deleted the last week losses and seem unstoppable right now, is trading in the green and most likely will resume the bullish momentum if the USDX will have enough energy to climb much higher again.

The USD received a another helping hand from the United States economic data today, the figures have come in better, forcing the greenback to appreciate further, the US dollar index has edged higher aggressively after the data were sent to the public.

The Loonie has decreased further even if the Canadian Manufacturing Sales have increased by 1.5% in November, much compared to the 0.2% estimate, the sales have increased sharply after the 0.6% drop in the previous reading period.  Unfortunately the Loonie has taken a hit from the Foreign Securities Purchases, the indicator has decreased from 15.77B to 7.24B, has come much below the 10.23B estimate.

The price has resumed the yesterday’s rally and now is approaching the upper median line (uml) of the minor descending pitchfork, where he could find resistance again. Has increased sharply in the yesterday’s trading session as the BOC has sustained that a rate cut is still on the table. Could increase further after the breakout above the second warning line (wl2) of the previous ascending pitchfork, could approach also the upper median line (UML) of the major descending pitchfork after the false breakout below the major confluence area formed at the intersection between the median line (ML) with the 1.3047 static support.

However, we could see a minor decrease after the impressive rally because the price could try to consolidate the latest gains before will climb much higher, remains to see what will happen when will hit the upper median line (uml) of the minor descending pitchfork. The rate is moving somehow sideways on the short term and most likely will move inside this range in the coming weeks.