FX.co ★ USD/CAD: upside scenario taking shape

The currency pair climbed as much as 1.3499 today but now it has retreated a little and is located at 1.3485. You already know from my previous analyses that the USD/CAD pair could develop a strong upward movement. Still, the Dollar Index's retreats could force the price to come back down.

Today, the fundamentals should be decisive. The United States CB Consumer Confidence index may drop to 105.5, the Richmond Manufacturing Index is expected at -6 points, while New Home Sales could drop to 699K. Better-than-expected figures should lift the USD.

USD/CAD Strong Upside Pressure!

Technically, the USD/CAD pair rallied after failing to retest the uptrend line. You knew from yesterday's analysis that bias is bullish as long as it stays above this dynamic support.

Now, it has jumped above the 1.3491 former high which represents a static resistance. After its strong rally, the rate came back to retest the minor downtrend line.

USD/CAD Forecast!

A new higher high, a bullish closure above today's high of 1.3499 validates further growth. This is seen as a buying opportunity. The R1 (1.3540) stands as an upside target.