The USD/CAD pair rallies at the time of writing, but it remains to see if the USD will be strong enough to be able to take full control. The pair moves in a range between 1.2650 and 1.2796 levels. USD appreciated aggressively as the Dollar Index rallied on geopolitical tensions.
After the US Prelim UoM Consumer Sentiment was reported at 61.7 points far below 67.2 expected, the USD was somehow expected to depreciate in the short term. Also, the Prelim UoM Inflation Expectations indicator was reported at 5.0% versus 4.9% in the previous reporting period.
USD/CAD Hovers Above Support!
USD/CAD retested the median line (ml) of the ascending pitchfork's median line (ml) which stands as a dynamic support. It has registered only false breakdowns below this downside obstacle.
As you can see, it has registered a false breakdown also below the 1.2650 static support, through the range's support announcing a new bullish momentum.
USD/CAD Prediction!
The currency pair could bring new selling opportunities if it makes a valid breakdown below 1.2650. This scenario could announce 146 pips drop.
A new higher high, jumping and closing above the 1.2753 could signal potential further growth and could bring new long opportunities as well. Still, only a valid breakout above the 1.2796, escaping from the range pattern could announce a larger growth.
