USD/CAD drops at the moment of writing and it could develop a broader downside movement. Technically, the pair has rebounded to retest the broken uptrend line, so now is somehow expected to drop.
The US Unemployment Claims is expected to decline from 400K to 382K, while the Trade Balance could drop further from -71.2B to -74.2B. Worse than expected data could force the greenback to lose more ground versus its rivals.
USD/CAD Technical Analysis!
USD/CAD has increased to retest the uptrend line, it has found resistance at the weekly R1 (1.2575) and now it could turn to the downside. Its false breakout with great separation through the uptrend line signaled a selling pressure.
USD/CAD could drop deeper as long as it stays within the descending pitchfork’s body, below the upper median line (UML). A new lower low, dropping below 1.2515 could activate a sell-off. Also, dropping and stabilizing below the weekly pivot point (1.2498) could really validate a leg down.
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