By Admiral Markets
Despite the excellent data for CAD currency, the USD economy also showed good numbers on Friday. While unemployment is still at 4.7% and wages are going up, we might assume that the economy is very strong and that may lead to another rate hike. I personally believe the US Fed will continue to gradually raise rates in the US leading to gradual USD strength in the medium term.
Technically the USD/CAD is showing bullish SHS pattern (inverted head and shoulders) and is supported at 1.3230. 4h close or strong 1h momentum above 1.3270 could spike the pair up to 1.3312 (ATR target) and 1.3330 (H5), USD/CAD bullish outlook is also supported by bullish divergence, so we could see buying into dips towards 1.3312-30 targets.
Follow @TarantulaFX on twitter for latest market updates
Article by Admiral Markets
Source: USD/CAD Leaned Inverted Head and Shoulders for Bullish Continuation
Free Reports:
Get Our Free Metatrader 4 Indicators - Put Our Free MetaTrader 4 Custom Indicators on your charts when you join our Weekly Newsletter
Get our Weekly Commitment of Traders Reports - See where the biggest traders (Hedge Funds and Commercial Hedgers) are positioned in the futures markets on a weekly basis.
Admiral Markets is a leading online provider, offering trading with Forex and CFDs on stocks, indices, precious metals and energy.
