USD/CAD increased today and tries to resume the last day’s minor rebound even if the dollar index plunges and accelerates the sell-off. Price is trading right above multiple support lines, but we’ll see for how long because the USDX seems unstoppable on the short term. USDX dropped deep in the seller’s territory and should hit fresh new lows in the upcoming days. The USD should drop further versus all its rivals if the dollar index will slide further.
The currency pair was into a corrective phase, but has found temporary support again and now looks determined to climb higher again. We’ll see what will really happen because the current increase could be only temporary and the rate could start to drop again.
USD/CAD is trading in the green even if the United States data have failed to impress, the CPI increased by 0.1% in October, matching expectations, while the Core CPI surged by 0.2% and has come in line with expectations as well. The USD received a helping hand from the Retail Sales , which have increased by 0.2%, more versus the 0.0% estimate. Unfortunately, the Core Retail Sales increased only by 0.1%, less versus the 0.2% estimate, while the Empire State Manufacturing Index dropped from 30.2 to 19.4 points.
The rate retested the uptrend line and now moves higher again. It maintains a bullish perspective on the short term after the minor decrease, you can see that has failed to stabilize below the median line (ML) of the major red descending pitchfork. The false breakdown below the median line (ML) has shown that the bears are exhausted.
Price approaches the 1.2803 static resistance and the upper median line (uml) of the red ascending pitchfork. A valid breakout could signal an increase towards fresh new highs. Right now is pressuring the median line (ml) of the blue descending pitchfork, remains to see if this will be a valid breakout or not. The major upside targets remain at the upper median line (UML) of the red descending pitchfork and higher at the upper median line (uml) of the blue descending pitchfork.