The USD/CAD is at a decisive point

The USD/CAD has kept a constant uptrend, but it seems like the bullish momentum is losing strength after it reached its most recent high at the 1.1178 level. On the Daily chart we can see that during the rallies, the real bodies of the candlesticks are relatively long, but when the real bodies shrink or become smaller, it usually signals an exhaustion of the bullish trend. Today we can see how the daily candle has closed in a “Spinning Top” formation; which is a Japanese Candlestick pattern of exhaustion and indecision. If tomorrow’s daily candle is bearish, then this could mean that a change in direction may be near.

However, we must keep in mind that during this week we have very important fundamental data pending that could support the Dollar, especially the Non-Farm Payrolls number; which if it comes out better than expected then the pair may continue with its uptrend.