USD/CAD has resumed its bullish momentum post FOMC. The price is pressuring a short term static resistance as we speak. Passing and stabilizing above 1.2850 psychological level validates more gains.
Technically, the pair has shown oversold signs lately, so the current swing higher is natural. USD/CAD has escaped from two Falling Wedge patterns recently announcing a bullish reversal.
The US Dollar was boosted by better than expected US data reported since last Friday. The manufacturing and services sectors further expansion, a higher CB Consumer Confidence, and the unexpected growth registered by the Durable Goods Orders and by the Core Durable Goods Orders helped the greenback to appreciate again.
Furthermore, some good US data today could help the pair to approach and reach fresh new highs in the coming hours.
USD In Full Control!
USD/CAD has managed to pass above the R1 (1.2823) and through the 1.2832 as the US Dollar Index continues to grow. Stabilizing above these broken upside obstacles signals further growth ahead.
The price has retested the Pivot Point (1.2706) and now it goes for new higher highs. The R2 (1.2916) level is seen as an immediate upside target.
Forecast!
Closing and stabilizing above the R1 (1.2823), a new higher high, suggests buying as USD/CAD should extend its upwards movement, growth. The R3 (1.3034) is seen as an important upside target.
