The USD/CAD pair rallies at the time of writing as the USD is boosted by the Dollar Index's further growth. It's traded at 1.2794 level at the time of writing far above 1.2684 today's low. In the short term, the pair dropped a little after its strong rally but the bias remains bullish.
The greenback remains strongly bullish even if the US economic data came in mixed. The Durable Goods Orders rose by 0.8% less compared to 1.0% expected, while Core Durable Goods Orders registered a 1.1% growth beating the 0.5% growth expected. Later, the CB Consumer Confidence is expected to grow from 107.2 to 108.5 points while the New Home Sales could increase from 772K to 774K.
USD/CAD Targeting New Highs!
USD/CAD retreated a little but it has failed to reach and retest the 1.2650 - 1.2675 support zone (resistance turned into support) signalling strong buyers. Also, it has failed to retest the ascending pitchfork's median line (ml) and now it could approach and reach the upper median line (uml) which is seen as potential resistance and target.
The current breakout above 1.2777 yesterday's high may signal an upside continuation. Technically, the pair is strongly bullish and it could approach and reach new highs as long as the Dollar Index resumes its growth.
USD/CAD Prediction!
A valid breakout above 1.2777 could confirm further growth. Closing and stabilizing above this obstacle on the H4 chart could bring long opportunities. The 1.2901 higher high is seen as a major upside target. A larger growth could be confirmed by a valid breakout above this level.
