USD/CAD is trading in the red at the time of writing, at 1.2295 level and it could retest dynamic support. Unfortunately for the USD, the Core PCE Price Index increased only by 0.5% versus 0.6% expected, while the Personal Spending increased by 0.0% versus 0.4% forecast.
The Personal Income dropped by 2.0%, even if the specialists have expected to see a 2.5% drop. It remains to see how the dollar will react after the Revised UoM Consumer Sentiment will be released later.
USD/CAD Retesting The Buyers!
As you can see on the H4 chart, USD/CAD has decreased to retest the 150% Fibonacci line of the descending pitchfork after failing to close above the 50% retracement level.
Only jumping and stabilizing above the 50% level could signal potential growth. The major resistance stands at the first warning line (WL1). A larger growth will be confirmed by a valid breakout through this level.
Outlook!
Buy USD/CAD is the price jumps and closes above 1.2340 level. It could rebound and it could increase if it stays above the 150% line and beyond the 61.8% level. The former high of 1.2486 could be used as an upside target.
