The USD/CAD pair changed little in the short term. It's trading at 1.3628 at the time of writing. After its strong growth, a minor retreat and a sideways movement was natural as the rate tries to accumulate more bullish energy before jumping higher.
USD/CAD climbed as much 1.3647 even if the US CB Consumer Confidence came in worse than expected. Fundamentally, the US data came in better than expected earlier, so the greenback could try to appreciate again. Durable Goods Orders rose by 3.2% versus 0.7% growth expected, Core Durable Goods Orders increased by 0.3% even if the traders expected a 0.2% drop, while Goods Trade Balance came in at -84.6B compared to -90.1B estimated. In addition, Prelim Wholesale Inventories came in line with expectations. Tomorrow, the Advance GDP, Advance GDP Price Index, and Unemployment Claims could really shake the markets.
USD/CAD Temporary Consolidation!
Technically, the currency pair ignored the ascending pitchfork's upper median line (UML) which represented an upside obstacle. Now, it tries to consolidate above the weekly R1 (1.3620).
The minor retreat or sideways movement could represent an upside continuation pattern. The bias remains bullish as long as it stays above the upper median line (UML) and above the uptrend line.
USD/CAD Outlook!
Stabilizing above the R1 (1.3620) and making a new higher high, a bullish closure above 1.3647 activates further growth and is seen as a new buying signal.
Also, coming back to test and retest the upper median line (UML), registering only false breakdowns should bring new longs.
