The pair is trading at 1.3350 below yesterday's high of 1.3418. The minor drop was caused by the US Unemployment Claims unexpected growth to 870K in the previous week. Still, the retreat could be ended soon if the USDX will jump higher after the Durable Goods Orders and Core Durable Goods Orders data will be released.
Personally, I'm expecting to see another bullish momentum after the current drop. Another higher high, jump above 1.3418 suggests buying. USD/CAD is somehow expected to resume its upside journey after taking out the major downtrend line.
USD/CAD upside was stopped by the median line (ML) of the ascending pitchfork. I still believe that it will try again to make a valid breakout above this obstacle. So, a bullish fly above the median line (ML) and above 1.3418 former high validates further growth.
The R1 (1.3254) and 38.2% (1.3269) levels are seen as near-term strong support levels. The bias is bullish as long as USD/CAD is trading above these levels. Actually, a deeper retreat could help us to go long as well.
- USD/CAD Trading Tips
Buy a valid breakout above the median line (ML) or above 61.8% (1.2439) level with higher targets at 1.36, 1.37 levels. Right now we don't have a selling signal, so we have to search only for long opportunities.
A deeper drop to 1.3259 could bring another long opportunity. Better than expected US data should send the pair towards fresh new highs.
