The USD/CAD pair rallies at the time of writing as the Dollar Index has managed to reach fresh new highs. The bias was still bullish, so the currency pair could extend its upside journey. Despite better than expected Canadian retail sales data, USD/CAD is targeting new highs.
Later, the US Existing Home Sales could be reported at 6.20M below 6.29M in the previous reporting period. Also, President Biden Speaks could bring more volatility into the markets. Tomorrow, the US Flash Manufacturing PMI is expected to grow from 58.4 to 59.0 points, while the Flash Services PMI could increase to 59.1 points from 58.7 in the previous reporting period. Maybe this is the reason why the USD rallies right now.
USD/CAD Technical Analysis!
As you can see on the h4 chart, USD/CAD was expected to resume its growth as long as it was traded above the immediate uptrend line. The next upside target is seen at the weekly R1 (1.2701) level. Also, the median line (ML) could attract the rate after the pair confirmed this major pitchfork.
Making a new higher high, a bullish closure above 1.2662 former high could signal further growth ahead. The upside scenario could be invalidated only if the price drops below the uptrend line.
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