FX.co ★ USD/CAD Targeting New Highs!

USD/CAD rallied after the FOMC and now is located at 1.2294 level. The pair has finally developed a bullish reversal after moving sideways within a narrow range. You knew from my analysis that a new higher high could activate an upside reversal.

The Loonie will weaken more even if the Canadian CPI is reported better than expected. The currency pair was dragged higher by the USD as the US Dollar Index has registered an amazing rally.

USD/CAD Strongly Bullish!

USD/CAD has jumped way above the descending pitchfork's upper median line (UML) and it looks strong enough to approach and reach the R3 (1.2319). Its breakout from the extended range signaled an upside movement.

It's traded above the 38.2% retracement level signaling that the upwards movement may resume. The confluence area formed at the intersection between the 50% with the 150% Fibonacci line could attract the price.

Forecast!

USD/CAD valid breakout above the 23.6% retracement level represented a great buying opportunity. Now, we have to wait for potential consolidation or for a minor decline before going long again.

It could slip lower after reaching the immediate resistance levels. Ignoring these levels signals more gains.