The USD/CAD pair is trading in the red at 1.3471 on H1 at the time of writing. After its strong rally, a minor drop is natural. The rate could test and retest the near-term support levels before jumping higher. The pair rallied in the short term only because the Dollar Index rebounded.
Fundamentally, Canadian Wholesale Sales rose by 0.5% beating the 2.0% growth expected. On the other hand, the Philly Fed Manufacturing PMI, Unemployment Claims, and Housing Starts came in better than expected, while Building Permits disappointed.
Tomorrow, Canadian Retail Sales may report a 0.5% drop, while Core Retail Sales could register a 0.6% fall. The economic data could have a significant impact on the USD/CAD pair.
USD/CAD Temporary Drop?
USD/CAD found resistance at 1.3518 and failed to stay above the upper median line (uml). Now, it has found support on the weekly R1 (1,3460). The 1.3458 - 1.3445 zone stands as a support area.
The median line (ml) is seen as dynamic support, as a downside obstacle. Testing and retesting these levels may announce a bullish momentum.
USD/CAD Forecast!
Testing and retesting the 1.3445 - 1.3458 zone, registering only fasle breakdowns could bring long opportunities. Also, a new higher high, jumping and closing above 1.3518 activates further growth and brings new longs.
