The USD/CAD pair is moving somehow sideways in the short term. It's trading at 1.3222 at the time of writing and it seems determined to jump higher. The price remained bullish in the short term, even if the Dollar Index dropped a little.
Yesterday, the CB Consumer Confidence came in better than expected and compared to the previous reporting period, but the USD failed to register strong growth. In the short term, the bias is bullish, but it remains to see how it goes around the FOMC. The Federal Funds Rate is likely to be raised by 25 bps, but the FOMC Press Conference and the FOMC Statement could provide further guidance.
USD/CAD Upside Continuation!
As you can see on the H1 chart, the rate moved sideways within a symmetrical pattern. It has escaped from this pattern but it has found resistance at the 1.3233 which represents a key static resistance.
Now, it came back to test and retest the broken downtrend line, trying to confirm the breakout. In my opinion, the bias remains bullish in the short term as long as it stays above the weekly pivot point of 1.3200.
USD/CAD Outlook!
Jumping and closing above 1.3233 activates further growth and is seen as a buying signal. The R1 (1.3270) and R2 (1.3320) represent potential targets.
