USDCAD Longs as Dollar Bulls Attempt a Rally at 92.850

Price action traders are entering long for USDCAD as Dollar bulls remerge after a week of battling bearish pressure. This bullish presence is prominent even after today’s bearish GDP data.

After a sharp slump lower, USDCAD bulls are starting to gain momentum again. Last week’s price created a new high for the month but instantly printed a shooting star candle on the daily. This lead to a quick but short move done. This type of move occurred right before the previous rally, suggesting a new leg up is due.

The US Dollar Index (DXY) has been known to have deeper retracements than normal this year. Sometimes price retracing past the 50% Fibonacci level, only for the price to rally back higher again. This may be what we’re seeing for the Dollar as bulls print a bullish engulfing candle on the daily. This may be further confirmation for the next leg up.

Today’s US GDP result came out at 6.6% versus the forecast of 6.7%. The Dollar still pushed higher despite this result. This depicts just how strong the bullish trend for the Dollar is as price tries to recoup the losses made due to Covid-19.

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