FX.co ★ USD/CAD Upside Momentum Expected Anytime!

USD/CAD moves sideways in the short term staying in the buyer's territory. It has retested the immediate uptrend line signaling that the pair could jump higher again. The pair has printed a short-term retreat but the bias is still bullish.

The pair could register sharp movements during the week as the US and Canada are to release high-impact data. You should keep an eye on the Dollar Index to understand how the greenback may react versus its rivals.

The US New Home Sales are expected at 800K versus 769K, better than expected data could help the USD to increase. Tomorrow, the CB Consumer Confidence, Durable Goods Orders, and the Core Durable Goods Orders could bring more activity on USD/CAD.

FOMC could be decisive on Wednesday, the volatility will be high around this event. Moreover, the US Advance GDP and the Canadian inflation data could drive the pair.

USD/CAD Still Bullish!

USD/CAD dropped after failing to stay above the channel's resistance. Now, it has found support on the immediate and minor uptrend line. Dropping below it signals a deeper drop towards the channel's support.

USD/CAD seems undecided, so we'll have to wait for a fresh signal before going long or short. A false breakdown with great separation below the current uptrend line followed by a new higher high, breakout above the weekly pivot point (1.2629), indicates further growth.

It remains to see if the current sideways movement is an accumulation or a distribution. Technically, the outlook remains bullish as long as it stays within the up channel's support.

Forecast!

Selling could be recommended if USD/CAD drops and closed under the immediate uptrend line.

On the other hand, a new higher high, a bullish closure above 1.2607, indicates further growth. WL3 is seen as a major upside target if USD/CAD increases in the upcoming days.