Today, US CPI figures are expected to have a strong impact on the volatility of USD pairs. Ahead of this data, we have a super strong sell signal on EURUSD, where the price broke the neckline of the giant head and shoulders pattern. Sentiment is negative, which could spell disaster for the major pair.
USDCAD is bouncing from the long-term upwards trend line, and today is trying to break the resistance at 1.31. If today's trading closes above the red area, it will be strong buy signal. We can also expect to see Canadian job market figures posted today.
Is the Dollar Index also supporting this bullish view? Yes, and the ascending triangle pattern is sending a strong buy signal on DXY. Yesterday, the price broke the horizontal resistance of this pattern and then used that as a support. Today, DXY is climbing much higher and that is pure confirmation of the positive sentiment towards the USD.