The USD/CAD posted little gains in the morning failing to approach and reach the 1.2389 yesterday’s high. Price has found temporary resistance right above an important dynamic obstacle, remains to see if will have enough directional energy to take this out.

We had a huge volatility on this pair in the yesterday’s session, but the bulls have won the battle. Price is trading in the green right now as the USD is forced to stay higher by the USDX’s increase. The dollar index is pressuring the 92.49 major horizontal resistance, a valid breakout above it will validate a further increase in the upcoming period.

The Loonie can take a hit from the Canadian Wholesale Sales, which is expected to drop by 0.7% in July, more versus the 0.5% drop in the former reading period.

The USD needs support from the US economy, but I’m not sure if will get it because the Unemployment Claims are expected to increase from 284K to 302K in the previous week, while the Philly Fed Manufacturing Index is expected to decrease from 18.9 points to 17.3 points.

The US HPI may increase by 0.4%, more versus the 0.1% in the previous reading period, the CB Leading index is to increase by 0.3%, matching the 0.3% growth in the former reading period.

The USD/CAD is trading above the lower median line (LML) of the major red descending pitchfork, but right below the lower median line (lml) of the minor blue descending pitchfork.

A valid breakout above the dynamic resistance will confirm a further increase in the upcoming period. Is still trapped within the descending channel, but is somehow expected to reach the upside line even if will move in range.

I’ve said in the last articles that the price is expected to climb much higher after the failure to close on the downside line of the descending pitchfork. A broader increase will come only after an accumulation movement because I don’t believe that will have enough energy to do if at this moment.