The USD/CAD has increased today and continues to stay above a very important dynamic support, could bounce back if will stay above this level and somewhere above the 1.3063 today’s low. Remains to see what will happen on the USDX in the coming days, the greenback will increase further versus the Loonie if the USDX will have enough directional energy. The USDX has touched new highs today, has increased as much as 101.78, much above the 101.40 yesterday’s high, but unfortunately has dropped sharply in the last hours, erasing the today’s gains.
The USD/CAD is moving somehow sideways right now, has found temporary support, but he needs a bullish spark to be able to increase significantly again. Could increase only if the US data will come better in the coming period.
The Loonie has managed to recover a little in the last hours as the United States economic have come in mixed, but also because the Canadian Manufacturing Sales have increased by 2.3%, beating the 1.4% estimate, the indicator has remained steady at 2.3% growth for the second month in December. The pair could be driven by the fundamental factors tomorrow as the US is to release high impact data again, so will be better to keep an eye on the economic calendar.
The rate has increased after the retest of the third warning line (wl3) of the former ascending pitchfork, could increase further if the dynamic support will hold if there will be another breakdown attempt. The behavior has changed on the short term when has started to make higher lows, but we still need a confirmation that the price will increase again. The confirmation could come from the USDX, the greenback will drag the rate much higher if the index will have enough directional energy to resume the upside movement.
Technically, the price is somehow expected to increase after the false breakdown below the median line (ML) of the major descending pitchfork and below the 23.6% retracement level. I’ve said in another article that the rate could come down to retest the third warning line (wl3) before will increase further.