USD/CAD opened with a gap down in the morning and looks determined to take out another support level. Is trading in the green right now even if the USDX is going down aggressively after another failure to take out the 93.81 static resistance.
USDX is approaching the 93.00 psychological level and the 92.94 previous low, will drop towards the 92.55 swing low if will close below these levels. We may still have a sideways movement above the 92.49 static resistance before will start another significant move.
USD/CAD is pressuring a dynamic support, a breakdown will open the door for more declines on the short term.
The Loonie lost some ground versus the USD in the last two hours as the Canadian Wholesale Sales dropped by 0.5%, even if the economists have forecasted a 0.6% growth. It is pressuring the fourth warning line (wl4) of the former minor ascending pitchfork. We’ll see what will happen because has retested the median line (ml), but a breakdown below the wl4 will send the rate towards the 1.2460 major static support.
Only a rejection from here will signal a bullish movement which could ignore the upper median line (uml) of the minor descending pitchfork and the median line (ML) of the major descending pitchfork.
You can see that I’ve drawn a major black ascending pitchfork, the rate could come even to retest the lower median line before will climb much above the1.2777 previous high.
