The USD/CAD pair dropped a little and now it has reached a support zone, a demand area. The price slipped lower as the Dollar Index has retreated. The currency pair could develop a new leg higher if the DXY starts increasing again.
The bias remains bearish despite a temporary decline. The United States economic data have come in better than expected lately, so fundamentally, the greenback is still strong. Today, the US PPI reported a 0.6% growth in October matching expectations, while the Core CPI registered a 0.4% growth failing to reach the 0.5% estimates.
Don’t forget that tomorrow, the US is to release its inflation data. The CPI and the Core CPI could be decisive.
USD/CAD Technical Analysis!
USD/CAD is traded at 1.2447 below the downtrend line. It has found support right on the 1.2428 weekly pivot point right above the ascending pitchfork’s lower median line (lml). Now, it is almost to reach the downtrend line.
Making a valid breakout above it and printing a new higher high could activate further growth. The pair could still grow as long as it stays within the ascending pitchfork’s body. Technically, the median line (ml) of the ascending pitchfork stands as a potential upside target, as an upside obstacle.
Only a valid breakdown below the lower median line (lml) could invalidate a potential upwards movement.
Note: ForexSchoolOnline is not a financial advisor. Do your research before investing your funds in any financial asset or presented product or event. We are not responsible for your investing results.