USD/CAD edged higher after ending its minor retreat. You already know from my previous analysis that the currency pair could still grow as the bias remains bullish. Now, it challenges the 1.2799 static resistance, the former high. A valid breakout could activate the upside continuation.
Later, the fundamentals may drive the pair, so you should be careful. The Canadian GDP is expected to register a 0.0% rise versus 0.4% in the previous reporting period. On the other hand, the US CB Consumer Confidence could drop from 113.8 to 110.8 points, while the Chicago PMI is expected at 67.1 points below 68.4 in the previous reporting period.
USD/CAD Strongly Bullish!
As you can see on the h4 chart, USD/CAD found strong support on the weekly pivot point (1.2737) and now is trading back above the ascending pitchfork's median line (ML).
It pressures the 1.2799 level. If the price closes and stabilizes above it could signal potential further growth. Still, in the short term, we cannot exclude a temporary drop. It could come back to test and retest the median line (ML) before resuming its growth.
Outlook for USD/CAD!
Jumping, closing, and stabilizing above 1.2799 could activate the upside continuation and could bring fresh long opportunities.
