The USD/CAD pair was trading in the red at 1.3165 at the time of writing. Technically, the rate reached a strong resistance zone, so a temporary retreat was natural. Also, the fundamentals have a big impact on the currency pair.
Today, the BOC increased the Overnight Rate from 2.50% to 3.25% matching expectations. In addition, the Canadian Ivey PMI and the Trade Balance came in better than expected. On the other hand, the US Trade Balance came in at -70.6B versus the -70.2B expected.
USD/CAD Retesting The Buyers!
USD/CAD found a strong supply at 1.3194 - 1.3207 and now it retests the median line (ML) which stands as a dynamic support. The minor broken downtrend line and the weekly pivot point (1.3100) represent support levels.
Despite temporary retreats, the bias remains bullish. In my opinion, only a new lower low, dropping and stabilizing below 1.3076 could invalidate an upside continuation.
USD/CAD Outlook!
Staying above the median line (ML) and jumping and closing above 1.3207 could activate further growth and may bring new buying signals. As long as it stays above the ML, USD/CAD could approach and reach the upper median line (UML).
