- The bullish engulfing pattern suggests that the retreat is over!
USD/CAD was into a short-term corrective phase but now it seems ready to turn to the upside again. Technically, the pair is still expected to develop an important upwards movement. The current decline could help the buyers to step in again.
The pair edges higher even if the US Unemployment Claims data have disappointed yesterday. The economic indicator was reported at 793K higher versus 755K expected. Today, the Prelim UoM Consumer Sentiment is expected at 80.8 versus 79.0 points in the former reading period.
USD/CAD Upside Momentum!
USD/CAD has found support right on the S2 (1.2671) level and now is traded back above the S1 (1.2714) approaching the descending pitchfork's upper median line (UML). A valid breakout through the UML suggests buying as the pair will resume its upwards movement.
Now, it is still trapped between the upper median line (UML) and the 50% Fibonacci line. Getting out from this down channel signals an up reversal in the upcoming period.
USD/CAD has printed a bullish engulfing pattern right on the S2 and on the 50% Fibonacci line signaling that the corrective phase could be over.
Trading Tips!
Jumping, closing, and stabilizing above the descending pitchfork's upper median line (UML) represents a buying signal. USD/CAD's failure to approach and reach the Falling Wedge's resistance or the descending pitchfork's median line (ML) announces another leg higher.
Escaping from the descending pitchfork's body, USD/CAD could approach the 1.2881 former high in the short term. Passing above it could indicate a larger growth ahead.
