USD/CAD Stands On Crucial Support Area
The currency pair has decreased today and has resumed the bearish movement as the USDX has touched fresh new lows. The Loonie has dragged the rate down, but remains to see what will happen and how will react after the Canadian and the US data will be sent to the public. We may have some volatility in the afternoon, so you should be careful not to ruin your account.
USD/CAD has squeezed a little in the last hours and waits for the US data to shake the markets again. The US PPI is expected to increase by 0.4% in September, beating the 0.2% growth in the former reading period, while the Unemployment Claims could decrease again, from 260K to 251K in the previous week. The Core PPI may increase as well by 0.2%, more versus the 0.1% in the former reading period.
The price had reached and retested the median line (ml) of the minor ascending pitchfork and now is pressuring the 1.2460 broken static support. I’ve said in the previous reports that the rate could come down to retest the median line (ml) and the 1.2460 static support, now we’ll have to see what will happen because a rejection will send the rate towards the median line (ML) of the major descending pitchfork and towards the 1.2678 static resistance.
However, we have to wait to escape again from the minor descending pitchfork’s body to be sure that will start a larger increase.
Brent Oil Losing Momentum
Brent Oil increased little today and tries to stay above the broken 250% Fibonacci line (descending dotted line). I’ve said in the previous reports that the price could come to retest the median line (ML) of the major ascending pitchfork before will drop again. We’ll see what will happen when will hit the ML and also the 57.72, a rejection will send the rate at least till the 61.85 retracement level and towards the 53.03 horizontal support.
Price extends the latest gains and looks determined to breakout from the minor descending pitchfork. I’ve said in the previous reports that price should reach the upper median line (uml) of the descending pitchfork after the failure to reach the median line (ml). A valid breakout above the WL5 and above the upper median line (uml) will validate an increase at least till will reach the 1.1621 previous high.
By Olimpiu Tuns – Market Analyst
I graduated a Master in Business Administration, I am a Market Analyst / Trader on Financial Markets (forex, commodities, futures, options) for more than 6 years, I use technical and fundamental analysis for my daily activity. Founder and Market Analyst at ovtbusiness.com (Financial Markets Blog) and contributor on investing.com, actionforex.com, countingpips.com, forexalchemy.com, etc.
Trading, in general, is very risky and is not suited for everyone. There is always a chance of losing some or all of your initial investment/deposit, so do not invest money you can’t afford to lose. You are strongly advised to carry out your independent research before making any trading decisions. All the analysis, market reports posted on this site are only educational and do not constitute an investment advice or recommendation to open or close positions on international financial markets. The author is not responsible for any loss of profit or damage which may arise from transactions made based on any information on this website.