Price edges higher ahead the US and the Canadian economic figures. Is strongly bullish on the short term and looks determined to recover much more after the impressive drop. Technically is expected to climb much higher because is located in the buyer’s territory, only some poor US numbers will turn the rate to the downside again.
USD/CAD will be driven by the fundamental factors later, remains to see the direction, but a USDX’s further increase will force the pair to climb higher as well.
The US PPI may increase by 0.1% in the previous month, matching the 0.1% growth in June, while the Unemployment Claims are expected to remain steady at 240K in the previous week. The Core PPIcould resume the uptrend, is forecasted to increase by 0.2%, more versus the 0.1% in the former reporting period. The Federal Budget Balance and the Natural Gas Storage will release as well, but I don’t think that will bring anything.
Keeps rallying after the breakout above the 1.2678 static resistance (resistance turned into support) and looks determined to reach the next upside targets from the warning line (wl3) and the median line (ML) of the major descending pitchfork. Actually, the rate could be attracted by the confluence area formed by the third warning line (wl3) and the median line (ML), where he may find resistance again. However, a valid breakout through the confluence area will accelerate the upside momentum.
I want to remind you that is still under some pressure as long as is trading within the minor descending pitchfork’s body and below the median line (ML) of the major descending pitchfork. The upside momentum towards the ML is natural after the failure to reach the LML.
