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  • USD/CAD is in highly bullish territory, although a pullback could be on the cards.
  • DXY is holding at a support structure, could be a catalyst for further gains in USD/CAD.

The price has rallied through the prior resistance which has now turned support. Bulls can aim for an extension, but a pullback should be expected at this juncture. However, should the DXY turn higher while US oil remains on the back foot, then this would be a catalyst for further gains in USD/CAD. 

Price held at prior volume area

The price held in support and illustrates how the next impulse could develop. See the chart below…

Bulls looking for the support structure to hold

The price is somewhat overextended and could be due a correction back into the support structure. Should the area holds, bulls will be seeking for an additional bullish impulse.

DXY daily chart

The DXY is testing key support and could be due a correction which would likely propel USD/CAD higher.