USD/CAD has decreased a little after reaching near-term resistance. The pair is trading at 1.2178 and it could resume its growth if the US Dollar Index jumps higher after the current decline. The pair has registered an upside breakout from an extended range signaling an upside reversal.
Some poor Canadian inflation data could push USD/CAD higher. Also, a neutral or a hawkish FOMC speech could boost the greenback tonight.
USD/CAD Upside Still Possible!
USD/CAD is bullish after making a valid breakout above 1.2144 and through the weekly pivot point. Now it has found resistance at the R1 (1.2199 ). A valid breakout through this resistance and above the upper median line (UML) could really signal further growth.
Personally, I believe that only a drop below the weekly pivot point (1.2128) could invalidate the bullish scenario.
USD/CAD Forecast!
A new higher high, a bullish closure above 1.2203 is seen as a bullish signal. 1.2300 psychological level is seen as an upside target.
