USD/CAD has decreased in the short term but the retreat seems over. The pair could come back higher if the US Dollar Index will have enough energy to resume today's rebound. Technically, the price is somehow expected to come back higher if the US data will come in line with expectations or better tomorrow.
The NFP, Average Hourly Earnings and the Unemployment Rate could be decisive for the greenback. Also, the Canadian Employment Change and the Unemployment Rate should bring high action on USD/CAD.
Better than expected US data and poor Canadian figures could boost the price.
USD/CAD Falling Wedge Retested!
USD/CAD has tested and retested the Falling Wedge pattern signaling another leg higher soon. Yesterday's bullish engulfing signals the end of the bearish movement and indicates a bullish reversal.
Though, only a new higher high, bullish closure above the 1.2797 level could really validate a swing higher. USD/CAD has found strong support on the 150% Fibonacci line once again and now is struggling to get back higher.
Trading Conclusion!
A new higher high, bullish closure above 1.2797 represents a buying opportunity. You can set your first upside target at the median line (ML) and the second one at the upper median line (UML).
The Stop Loss should be placed somewhere below the S2 (1.2620), preferably right under the 1.26 psychological level.
The material has been provided by InstaForex Company - www.instaforex.com