USD/CAD grows after ending its temporary decline. The bias remains bullish so the pair could approach and reach new highs soon. The greenback takes full control again as the US reported better than expected economic data yesterday.
The ISM Manufacturing PMI increased unexpectedly from 58.7 to 60.8 points even if the specialists have expected the indicator to remain steady at 58.7. Moreover, the Final Manufacturing PMI increased from 58.5 to 58.6, ISM Manufacturing Prices increased to 86.0, beating 80.0 estimates, while the Construction Spending has registered a 1.7% growth versus 0.7% expected.
Later, the Candian GDP will be released. The indicator could bring high volatility on USD/CAD. On the other hand, the US is to release high-impact data during the week, so USD/CAD could continue higher if the figures will come in line with expectations or better.
USD/CAD Resumes Upside Movement!
USD/CAD has decreased from 1.2747 high, it has retested the outside sliding line (SL1) and the Pivot Point (1.2651) level, and now is traded higher at 1.2687. The pair has slipped lower to confirm the upside breakout.
The price has printed a bullish engulfing right on the Pivot Point signaling strong buyers around this level. Getting back above 1.27 and passing above 1.2747 former high brings a long opportunity and confirms a larger growth.
The most recent decline was natural after the last aggressive growth. Dropping a little, USD/CAD could help the trades to catch a new bullish momentum.
Forecast & Tips!
You could search for long opportunities as long as USD/CAD is traded above the Pivot Point (1.2651). Dropping below 1.2638 signals a deeper short-term correction.
A false breakdown with great separation below the pivot point brings a good buying signal. Also, we'll have a great long opportunity if USD/CAD jumps and closes above 1.2747 former high.
R1 (1.2835) and the R2 (1.2931) are seen as upside targets if USD/CAD continues to increase.