USD/CAD is trading at 1.3567 and it could come back higher if the US Dollar Index jumps higher. The pair has decreased a little, but it could still resume its short-term rebound, the minor decrease could give us a great chance to go long on this pair.
Another higher high, or a false breakdown with great separation below the near-term support will confirm another bullish momentum. The Stochastic indicator is oversold, so a bullish movement is somehow expected.
USD/CAD has retreated after the failure to stabilize above the 1.3665 static resistance, and now it has found support right above the S1 (1.3541) level. A valid breakout above the PP (1.3628) could suggest buying again.
The pair has decreased but it has failed to retest the downtrend line, down channel's resistance, this is one of the reasons that USD/CAD could give birth to another leg higher in the short term.
Personally, I would like to see a false breakdown with a huge separation below the S1 (1.3541) before moving higher again, this situation would have given us a chance to buy it low. Without a false breakdown, pin bar, or a bullish engulfing, we have to wait for another higher high before going long.
A valid breakdown below the S1 (1.3541) will signal a further drop towards the lower median line (LML) of the major ascending pitchfork, this scenario could take shape only if the USDX drops aggressively in the short term.
USD/CAD is moving in a range between the S1 (1.3541) and the PP (1.3628), an upside breakout from this pattern will bring a long opportunity. Still, only a valid breakout above the 1.3665 and another higher high, a jump above the 1.3715 will really validate a major upwards swing towards the R3 (1.4001) level.
*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.
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