Tue, Mar 21, 2023 @ 01:23 GMT

USD/CAD At New Highs

The currency pair rallied aggressively in the afternoon and reached fresh new highs after the BOC Poloz’s speech. Price has managed to erase the Tuesday’s losses and to resume the upside momentum. USD/CAD has jumped above some important resistance levels, but the breakout needs confirmation.

Technically, we may have a minor consolidation here, it could come to retest the broken levels if the USDX will slip lower in the upcoming days.

The USDX climbed as much as 93.61 level, where has found temporary resistance again. The index is bullish on the short term, but remains to see how long this rebound will be because personally, I’m expecting to see a minor decrease after the current rally.

You should know that we may have a high volatility in the afternoon after the United States data will be released.

Price has jumped much above the median line (ml) of the blue ascending pitchfork and now stand above the 1.2460 static resistance as well. Has changed little in the first 30 minutes of the Asian session, but most likely will have a significant move later in the afternoon when the fundamental factors will take the lead again.

Is still under some pressure despite the minor increase because is trapped within the descending pitchfork’s body, only a valid breakout from it will confirm a larger rebound in the upcoming period. Personally, I believe that will take out the dynamic resistance from the upper median line (uml) if will touch it in the upcoming days.

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