FX.co ★ USD/CAD retreat ended, upside continuation

The USD/CAD pair rallied in the short term and was trading at 1.3541 at the moment of writing. The rate ended its retreat, and now it seems determined to resume its growth. After its previous growth, a temporary retreat was natural.

Today, the fundamentals moved the markets. The Canadian CPI rose by 0.5% less compared to the 0.7% growth expected. On the other hand, the USD received a helping hand from the Flash Services PMI and Flash Manufacturing PMI. The indicators came in better than expected.

USD/CAD strongly bullish

USD/CAD found strong demand above the weekly pivot point of 1.3430, and now it has jumped above 1.3519 historical level (static resistance). Stabilizing above this level activates further growth.

Technically, after registering a false breakdown with great separation below the lower median line (LML), the USD/CAD pair signaled a new leg higher.

USD/CAD forecast

Consolidating above the broken level of 1.3519, testing and retesting this level may announce further growth. This scenario stands as a long opportunity.