The USD/CAD pair is trading at 1.2779 at the time of writing right below 1.2796 today's high. The bias remains bullish as the Dollar Index could resume its upwards movement anytime after the hawkish FED.
The pair remains bullish, even though the US data came in mixed since yesterday. As long as the Dollar Index is bullish, the USD/CAD could extend its upside movement despite temporary declines. Today, the Core PCE Price Index reported a 0.5% growth matching expectations but the Revised UoM Consumer Sentiment was reported at 67.2 below 68.8 estimates. The DXY retreated a little after the US data dump but the index remains bullish. Only DXY's deeper drop could force the pair to slip lower.
USD/CAD Leg Higher!USD/CAD resumed its growth after retesting the ascending pitchfork's median line (ml). Now, it's trading above the weekly R3 (1.2760) broken upside obstacle. The next immediate target is repersented by the 23.6% (1.2805) level. Also, technically, after retesting the median line (ml), the USD/CAD pair could be attracted by the upper median line (uml).
Failing to stay above the R3 (1.2760) may signal exhausted buyers and a potential drop towards 1.2700 psychological level.
USD/CAD Outlook!USD/CAD is bullish, the ascending pitchfork's upper median line (uml) stands as a potential target. Temporary retreats could help the buyers to catch new bullish momentums. In my opinion, as long as it stays above 1.27 and above the median line (ml), the bias is bullish and the USD/CAD pair could jump towards fresh new highs. An upside continuation could be signaled by a valid breakout above 23.6% and above the upper median line (uml).