- The bias is bullish if it stays above the median line (ml).
- 3501 represents the first target.
- The US and Canadian data should be decisive tomorrow.
The USD/CAD price edged higher, trading at 1.3462 at the time of writing. The bias is bullish, so a further rise is highly probable.
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The pair may hit new highs if the greenback extends its upside bias. Fundamentally, the US dollar received a helping hand from the US economic figures on Friday.
The PPI reported a 0.3% growth beating the 0.2% growth estimated and the 0.0% growth in the former reporting period, while Core PPI increased by 0.3% exceeding the 0.2% growth forecasted.
Tomorrow, the fundamentals should remain in the driving seat. The Canadian Consumer Price Index is expected to report a 0.3% growth in July versus the 0.1% growth in June.
In addition, the Core PPI, Median CPI, Trimmed CPI, and Common CPI data will also be released.
On the other hand, the US Retail Sales and Core Retail Sales indicators are expected to report a 0.4% growth compared to the 0.2% growth in the previous reporting period.
Furthermore, the Empire State Manufacturing Index, Import Prices, Business Inventories, NAHB Housing Market Index, and TIC Long-Term Purchases data will also be released.
USD/CAD Price Technical Analysis: Strong Buying Momentum
Technically, the USD/CAD pair escaped from the minor flag pattern signaling an upside continuation. The median line (ml) of the ascending pitchfork represents dynamic support.
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As long as it stays above it, the rate should approach and reach new highs. Its failure to reach and retest this line announced strong buyers and bullish pressure.
The 1.35 psychological level represents the next upside target. It remains to see how it reacts around the 1.3501 former high.
A new higher high, a valid breakout should announce further growth ahead. The ascending pitchfork’s upper median line (uml) represents a potential target if the rate continues to grow.
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