The USD/CAD pair plunged yesterday as the Dollar Index crashed after registering a strong leg higher. The price maintains a bullish bias despite a temporary correction. It could come back to test and retest the near-term obstacles trying to attract more buyers and accumulate more bullish energy.
The pair was trading at 1.3656 at the writing above 1.3602 yesterday's low. Fundamentally, the pair crashed also after the US Pending Home Sales and the Prelim Wholesale Inventories came in worse than expected yesterday.
Today, the Canadian GDP is expected to report a 0.1% drop, while the US Final GDP could register a 0.6% drop. The economic data could be decisive in the short term. The US Unemployment Claims indicator is expected to jump from 213K to 215K in the last week.
USD/CAD Up-Channel!
USD/CAD failed to stabilize below the broken uptrend line and under the median line (ml) signaling exhausted sellers. Poor Canadian data and better-than-expected US figures could increase the rate.
The 1.3639 and 1.3602 levels represent downside obstacles. The false breakout through the channel's upside line technically announced a sell-off.
USD/CAD Forecast!
A new lower low, dropping and closing below 1.3602 activates more declines and brings short opportunities.
On the other hand, by staying above the uptrend line and beyond 1.3639, the USD/CD pair may develop a new bullish momentum towards the R1 (1.3720) and up to the upper median line (uml).
