The USD/CAD pair remains bullish despite the current drop. A strong consolidation could bring new long opportunities. Only a new lower low could activate a bearish reversal. The USD/CAD price is trading in the red at 1.2994 at the time of writing. After its strong rally, the pair found a strong supply, so a temporary drop is natural. It could come back down to test the immediate support levels before resuming its growth. The bias remains bullish despite temporary declines. -Are you interested in learning about forex live calendar? Click here for details- As you already know, the pair rallied as the Dollar Index rebounded after its last drop. Now, the DXY drops again. That’s why the USD is losing ground versus its rivals. DXY’s deeper drop should force the greenback to depreciate versus other major currencies. Still, don’t forget that the retreat could be only a temporary one. The FED is expected to continue hiking rates, so the USD could retake the lead soon. Fundamentally, the USD was punished by Friday’s Capacity Utilization Rate and Industrial Production data. On the other hand, the CAD was supported by the RMPI and by IPPI indicators. Today, the US banks are closed in observance of Juneteenth National Independence Day. Tomorrow, the Canadian Retail Sales indicator is expected to report a 0.8% growth, while Core Retail Sales could register a 0.5% growth. Get FREE Forex Signals Now! USD/CAD price technical analysis: Downside correction As you can see on the 4-hour chart, the bullish momentum was stopped by 1.3076 higher high, representing a major static resistance. The USD/CAD registered only a false breakout through the ascending pitchfork’s median line (ml). -Are you interested in learning about forex signals? Click here for details- The weekly pivot point of 1.2960 and 1.2949 is seen as immediate downside obstacles. As long as it stays above this key level, the rate could resume its growth. A valid breakdown could open the door for a larger drop. Strong consolidation above the near-term downside obstacles could bring new long opportunities. The price drops, trying to accumulate more bullish energy before approaching the 1.3076 resistance again. An upside continuation will be confirmed by a new higher high. On the other hand, a downside reversal could be activated by a valid breakdown below 1.2860. Looking to trade forex now? Invest at eToro! Trade Forex Now! 68% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money Olimpiu Tuns Olimpiu Tuns Olimpiu Tuns graduated with a Master in Business Administration and is a seasoned Market Analyst / Trader / Trainer with 10 years of experience in the financial markets having expertise in Forex, Commodities, Index, Cryptocurrencies, and Stocks. He worked as a Market Analyst for three major brokerage companies, as a prop trader, and as a contributor/content creator for news portals and educational platforms. View All Post By Olimpiu Tuns Majors share Read Next AUD/USD Forecast: Falling Commodity Prices to Weigh on Aussie Saqib Iqbal 7 months The USD/CAD pair remains bullish despite the current drop. A strong consolidation could bring new long opportunities. Only a new lower low could activate a bearish reversal. The USD/CAD price is trading in the red at 1.2994 at the time of writing. After its strong rally, the pair found a strong supply, so a temporary drop is natural. It could come back down to test the immediate support levels before resuming its growth. The bias remains bullish despite temporary declines. -Are you interested in learning about forex live calendar? Click here for details- As you already know, the pair rallied… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.