The USD/CAD pair seems undecided today. It moves sideways, so we need to wait for fresh opportunities. It was located at 1.3215 at the time of writing. Today, the US banks were closed, that's why we have a low volume. Technically, after its strong downside movement, we cannot exclude a potential rebound.
Fundamentally, the Canadian IPPI reported a 1.0% drop versus the 0.3% drop estimated, while RMPI registered a 4.9% drop compared to the 1.7% growth forecasted. Tomorrow, the US Housing Starts and Building Permits should bring life to this market.
USD/CAD upside scenario above 1.3239
From the technical point of view, the USD/CAD pair moves sideways between 1.3177 and 1.3239 levels. It came back above the median line (ML) of the major descending pitchfork. As long as it stays below the downtrend line, the bias remains bearish.
The current range could represent a downside continuation pattern. Still, it's premature to talk about a larger drop.
USD/CAD outlook
A new lower low, a bearish closure below 1.3177 activates more declines and is seen as a new selling signal.
Coming back above 1.3239 signals a breakout through the downtrend line.
