FX.co ★ USD/CAD reaches major resistance

The USD/CAD pair climbed as much as 1.3078 today. The price is strongly bullish as the Dollar Index has managed to come back higher. DXY's further growth forced the USD to appreciate versus the other major currencies.

Fundamentally, the Canadian IPPI rose by 1.7% beating the 0.1% expected, RMPI surged by 2.5% versus 1.7% estimates, while the Foreign Securities Purchases came in at 22.2B versus 42.03B forecasts.

Surprisingly or not, the USD remains bullish even if the US Industrial Production rose by 0.2% less versus 0.4% expected, Capacity Utilization Rate came in at 79.0% versus 79.2% forecasts, while the CB Leading Index dropped by 0.4% matching expectations. The USD remains bullish as the Federal Reserve is expected to hike rates in the next monetary policy meetings.

USD/CAD Strongly Bullish!

As you can see on the H4, USD/CAD resumed its growth after retesting the descending pitchfork's upper median line (uml). The breakout above 1.2995 activated further growth. Now, it has reached 1.3052 - 1.3076 resistance area.

DXY's further growth should push USD/CAD higher. Still, after the current strong rally, we cannot exclude a minor retreat. We could have a strong supply around the resistance area. It could come back down to retest the 1.2995 key level.

USD/CAD Forecast!

A valid breakout above 1.3076 could activate an upside continuation and could bring new long opportunities. Jumping, closing, and stabilizing above this level could help the buyers to catch further growth.