The USD/CAD posted some gains in the first part of the day, but what will come is more important. The economic calendar is filled with high impact data, which will have a huge impact on the price action. Price continues to be under immense selling pressure because is located under some important resistance levels (support turned into resistance).
USD/CAD increased even if the dollar index has decreased further, we’ll be important to see how will react after the Canadian and the US data will be sent to the public. The USDX is trading near an important support zone, but remains under pressure.
The BOC is expected to leave the rate unchanged today, at 0.75%, could announce a rate hike in the upcoming month. The Canadian Trade Balance could increase from -3.6B to -3.2B, while the Labor Productivity could increase by 0.9%. The greenback needs a helping hand from the US economy, but remains to see if will receive one.
Price is on a declining path and maintains a bearish perspective. Has dropped again below the median line (ml) of the minor descending pitchfork and under the lower median line (lml) of the black descending pitchfork. Only a false breakdown below these levels will signal a reversal in the upcoming weeks.
USD/CAD failed once again to reach and retest the lower median line (LML) of the major descending pitchfork, signaling an oversold. However, is premature to say that the corrective phase is completed, because the fundamental factors could demolish any bullish perspective.
Technically, a retest of the lower median line (lml) of the minor ascending pitchfork will confirm a further increase in the upcoming period.
