- The USD/CAD pair maintains a bullish bias despite a minor retreat.
- Taking out the near-term resistance levels could announce an upside continuation.
- In the short term, the USD/CAD pair seems undecided as the Canadian retail sales data came in mixed.
Our USD/CAD forecast sees the pair trading at 1.2928 level at the time of writing. In the short term, the price seems undecided. Technically, the pair reached a resistance area, so it remains to see how it will react.
The USD is still strong as the Dollar Index has managed to rally after its temporary decline, DXY’s further growth could keep the currency pair higher.
The pair raised as much as 1.2963 level in yesterday’s trading session, where it has found resistance. Also yesterday, the US CB Leading Index registered a 1.1% growth versus a 0.9% growth expected which was good for the USD.
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3 Free Forex Every Week – Full Technical Analysis
The pair continues to stay higher as the Canadian retail sales data came in mixed today. As you already know, the Retail Sales registered a 1.6% growth in October versus 1.0% expected and after a revised 0.3% drop in September. In addition, the Core Retail Sales reported a 1.3% growth less versus the 1.6% expected growth.
The US Current Account reported worse than expected data. It was reported at -215B versus -206B expected and compared to -198B in the previous reporting period. Tomorrow, the US is to release significant economic data such as the Final GDP, CB Consumer Confidence, and the Existing Home Sales.
USD/CAD Forecast: Technical Analysis – Key Resistance
The pair climbed higher within an up channel. As long as it stays above the 1.2896 and adobe 1.2920, the USD/CAD maintains a bullish bias. 1.2949 – 1.2951 stands as a static resistance area. Consolidation below it may announce a potential upside breakout.
In the short term, a minor decline was expected after registering only a false breakout with great separation above the upside obstacles. The temporary decline, sideways movement, could help the buyers to catch a new bullish momentum. Jumping, closing, and stabilizing above the 1.2949 – 1.2951 levels could indicate an upside continuation.
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