The USD/CAD pair plunged after the BOC but it has failed to stay in the sellers' territory. The price erased the short-term losses and now it seems determined to come back to its former highs. It's traded at 1.2611 and it could climb higher if the Dollar Index resumes its growth after better than expected US data reported earlier.
USD/CAD retreated a little but the bulls took the lead again after the US Industrial Production rose by 0.9% beating the 0.4% expected, Capacity Utilization Rate came in at 78.3% exceeding 77.88% estimates, while the Empire State Manufacturing Index was reported at 24.6 points above 0.9 points forecasts.
USD/CAD 1.2650 As Target!
USD/CAD stands above the median line (ML) of the ascending pitchfork after escaping from the descending pitchfork's body. It has retested the 38.2% (1.2593), the upper median line (uml), and the median line (ML), and now it tries to resume its growth.
1.2575 and 1.2586 levels are seen as static support levels. In the short term, it could grow as long as it stays above the median line (ML).
USD/CAD Forecast!
After its minor retreat, USD/CAD could climb higher towards the 1.2650 key level. As long as it stays above the median line (ML), the pair could be attracted by the upper median line (UML).
The 38.2% retest was seen as a potential long opportunity. Only a valid breakdown below 1.2575 could invalidate an upside continuation.
