USD/CAD has finally broken above the resistance of 1.3210 and the market had good bullish pressure to surge higher. Currently, USD is dominating CAD rather than any other major currency. Today the current account report was published in Canada (deficit -10.7B vs. -9.6B forecast); Canada's personal spending decreased by 0.2% (-0.5% previously); and the overnight rate was left unchanged at 0.50%. On the other hand, the US ISM Manufacturing PMI stood at 57.7 (56.2 forecast), which did affect the currency and USD/CAD has surged much higher. Currently, USD is strongly dominating CAD and it is expected that USD will continue to gain until any high-impact report from Canada shows some positive results.
Now let us look at the technical view. The price has surged higher after breaking the resistance at 1.3210 and market has not retraced much today. Currently, the price has again come inside the rising channel of April 2016 and upward momentum is said to continue further. If the price closes above 1.34 with a daily close, it is expected that the price will surge much higher towards 1.3550. On the other hand, if the price rejects from 1.34, we might see some bearish price action continuing to push the price down towards 1.3210 again.
