The currency pair increased today and tries to climb much higher after the breakout above an important dynamic resistance. Price tries to recover after the Friday’s drop, we’ll see what will happen because the USDX could slip lower in the upcoming days.
The dollar index failed to stay above the 93.81 static resistance and shows some exhaustion signs. A USDX’s drop will force the USD to lose ground versus all its rivals on the short term. Right now is premature to talk about a correction on the USDX because is still located above some important support levels.
The price was driven by the technical factors today, we had a poor economic calendar, the Canadian banks are closed in observance of Thanksgiving Day, while the US Banks are closed in observance of Columbus Day.
USD/CAD has come down to retest the broken upper median line (uml) of the minor descending pitchfork. Technically, it should increase further after the breakout from the descending pitchfork. The next upside target will be at the 1.2678 static obstacle and at the median line (ML) of the major descending pitchfork.
However, price could come down to retest the 1.2460 and also the median line (ml) of the blue ascending pitchfork before will jump much higher. Another leg lower if off the table right now, only a breakdown below the median line (ml) of the blue ascending pitchfork will announce a drop towards the lower median line (LML) of the red descending pitchfork.