USD/CAD increases ahead US and Canadian data
The currency pair edges higher and resumed the yesterday’s minor bullish candle, remains to see how this bounce back will be because is still under massive selling pressure on the Daily chart. Price increases as the dollar index stays higher, near the 96.10 level, a USDX’s further increase will force the greenback to appreciate versus all its rivals. The fundamental events could bring life on the currency market, the CMHC will publish the Canadian Housing Starts indicator, which is expected to increase from 195K to 200K in June. On the other hand, the US is to release the JOLTS Job Openings, which could decrease from 6.04M to 5.98M in May and the Final Wholesale Inventories, the economic indicator could increase by 0.3% in May.
We’ll see how the USD will react later after the data will be released, a disappointment will send the USD/CAD lower again.
Price managed to bounce back on the Daily chart and now is pressuring the second warning line (wl2) of the ascending pitchfork. We’ll have a larger rebound only if will stay above the median line (ML) of the major descending pitchfork and if will make an accumulation move.
NZD/USD plunged aggressively
The Kiwi dropped sharply against the USD today and erased the last weeks gains, could drop much deeper if the dollar index will have enough energy to stay above the 96.00 psychological level and to resume the minor throwback. Has dropped more than 50 pips today and looks unstoppable on the short term.
You can see that has extended the minor corrective phase and is very close to hit the second warning line (WL2) of the former major descending pitchfork. The current retreat was somehow expected after the impressive rally, could find support at the WL2 and lower at the fourth warning line (wl4) of the former ascending pitchfork. Actually, could be attracted by the confluence area formed between the mentioned dynamic support levels.
We’ll have a larger drop if the rate will breakdown through the mentioned confluence area, but a rejection from the confluence zone will bring us a good buying opportunity. The perspective remains bullish as long as the wl4 remains intact.
GOLD trading in the red
The yellow metal remains under massive selling pressure as the USD tries to rebound and to recover after the last week’s drop. Will decreased further if the USDX will have enough energy to increase further.
Price is challenging the 50% retracement level, a valid breakdown below this level will open the door for more declines. The perspective is bearish on the short term as long as is trading within the descending pitchfork’s body. Could drop much below the $1200 per ounce if the USD will receive support from the US economy. A minor bounce back will come only if the 50% support will hold for now.
