The USD/CAD  increased a little today, but failed to reach the 1.2788 yesterday’s high and now is trading in the red again. Remains to see what will happen because the last hours drop could be only temporary before the price will increase and will resume the minor bounce back.

Price has managed to jump above an important dynamic resistance (support turned into resistance) so now is trying to retest this level and maybe will resume the last days’ bullish movement. Is very important to see what will happen on the USDX in the upcoming days. As you already know, the dollar index has found strong support at the 93.81 static downside obstacle, but remains to see if will consolidate above and to start another bullish movement.

USDX climbed above a dynamic resistance and above the 94.00 psychological level, but failed to stay there.

The Loonie increased a little as the Canadian Manufacturing Sales rose by 0.5% in September even if the traders have expected to see a 0.4% drop, while the Foreign Securities Purchases was reported at 16.81B, much above the 10.68B estimate and versus the 9.77B estimate.

On the other hand, the greenback dropped on the mixed US data, the Unemployment Claims and the Import Prices have disappointed earlier.

The rate dropped and is pressuring the median line (ml) of the blue descending pitchfork, it could retest the uptrend as well in the upcoming hours. Price failed to reach and retest the 1.2803 and the upper median line (uml) of the red ascending pitchfork. USD/CAD could test the confluence area formed between the uptrend line with the median line (ml) of the blue descending pitchfork, a rejection will send the rate towards fresh new highs, but a breakdown will signal another leg lower in the upcoming weeks.

Right now is better to stay away because we don’t have any trading opportunity, but we’ll have one very soon as the rate is trapped within crucial resistance and support levels.