The USD/CAD pair rallied in the short term as the Dollar Index extended its swing higher. The price is located at 1.3486 at the time of writing. After such an impressive rally, we cannot exclude a minor retreat as the rate could try to test and retest the support levels before jumping higher.

Fundamentally, USD took the lead after the FOMC meeting. The Fed maintained its monetary policy unchanged but signaled a new rate hike till the end of the year. Later, the SNB and the BOE are expected to deliver a 25 bps hike. These are seen as high-impact events and could really shake the markets. Furthermore, the US is to release the Unemployment Claims, Existing Home Sales, CB Leading Index, Current Account, and the Philly Fed Manufacturing Index.

USD/CAD Leg Higher

Technically, the price rallied after retesting the weekly R2 (1.3410). Now, it has jumped far above the downtrend line signaling a potential reversal.

Staying above the median line (ml) of the ascending pitchfork could announce an upside continuation.

USD/CAD Outlook

A new higher high as well as jumping and closing above 1.35009 activates further growth. This could be seen as a new buying signal. The upper median line (uml) and the weekly pivot point of 1.3550 are seen as potential targets.