FX.co ★ USD/CAD Reverses!

USD/CAD ended its temporary decline and now it seems determined to jump higher again. It's located within a narrow range, an upside breakout could bring a bullish reversal. The pair increases as the DXY has rebounded.

The Non-Farm Payrolls reported 559K jobs created in May versus 645K expected and compared to 278K in April. The greenback plunged after this publication even if the US Unemployment Rate dropped from 6.1% to 5.8% below 5.9% expected, while the Average Hourly Earnings increased by 0.5% versus 0.2% forecast.

USD/CAD Trading In The Green!

The price has found strong support at 1.2012 and now is located above the weekly pivot (1.2069). It has retested this level and now it could try to approach and reach the R1 (1.2132) level.

Technically, the USD/CAD pair could resume its sideways movement in the short term. I believe that only a valid breakout above the R1 (1.2132) and through 1.2144 could announce a strong growth.

Outlook!

Buy a valid breakout above 1.2144 level with a potential upside target higher at R3 1.2258 level.