The USD/CAD pair crashed in the last hours and now it stands at 1.3516. Today, it has climbed as much as 1.3549 where it has found resistance again. It remains to see how it reacts as the rate touches a major demand zone.
Fundamentally, the pair dropped as the USD took a serious hit from the US Prelim UoM Consumer Sentiment was reported lower at 67.7 points versus 69.0 points expected. On the other hand, the CAD received a helping hand from the Canadian Manufacturing Sales which reported a 1.6% growth beating the 0.7% growth estimated.
USD/CAD Demand Zone!
Technically, the USD/CAD pair found resistance at 1.3542 and now is located inside the 1.3513 - 1.3496 demand zone.
You knew from yesterday's analysis that the price could develop a new swing higher as long as it stays above 1.3496.
USD/CAD Outlook!
A new lower low, bearish closure below 1.3496 activates a further drop. This is seen as a selling signal.
Stabilizing above 1.3513, registering false breakdowns below the support levels may announce a new bullish momentum. Still, only a bullish closure above 1.3542 could bring us a new buying opportunity.
