USD/CAD dropped in the early morning invalidating the breakout through the immediate downtrend line. It could decline a little in the short term before resuming the rebound.

The Canadian Dollar remains strong after the Ivey PMI increased unexpectedly higher from 60.0 to 72.9, exceeding 62.0 expectations. The US Unemployment Claims may bring more action on USD/CAD later today.

Still, the Canadian data published on Friday could be decisive. The Employment Change is expected at 101.5K below 259.2K while the Unemployment Rate may drop from 8.2% to 8.0%.

USD/CAD Bullish Reversal Favored!


USD/CAD flirts with the immediate downtrend line. A valid breakout above it and a new higher high confirms a bullish scenario. The pair has found strong support on the downtrend line and right on the weekly S1 (1.2520).

Now, the immediate static support is seen at the weekly pivot point (1.2583). The ascending pitchfork’s lower median line (LML) represents strong dynamic support as well.

Personally, I believe that jumping and stabilizing above the weekly and daily R1 (1.2639), registering a new higher high, will really validate more gains.

USD/CAD Outlook!

An H4 bullish closure above the R1 (1.2639) represents a bullish signal. The next upside target could be at the weekly R2 (1.2703).

The material has been provided by InstaForex Company –

Leave your vote

🚀If you want to get a Forex Robot Coded as per your trading strategy but are unable to do so because of the high price for the Robot then you can take advantage of the CROWD FUNDING campaigns feature. ✔ These are some crowd funding campaigns for Forex Robots, which when completed can provide the very same Forex Robot to the participants at an average price of $5-$10 per participant. ✔ You either participate in one of the already listed campaigns or send us your Forex strategy : Submit Crowd Funding Campaign , for which you would like the Forex Robot to be coded. A Crowd Funding Campaign would then be started for the same . ✔ All you have to do later on is to share the campaign online with your friends to encourage more people to participate in the campaign.

As a result, each participant can get that Forex robot for just a campaign contribution of $5 (which is the minimum). Participants can back the campaign by anything above or equal to $5 to reach the funding goal to close the campaign.