USD/CAD undecided ahead the US and Canadian data
The currency pair changed little in the last hours, but will move aggressively in the upcoming hours as the fundamental factors will take the lead again. The US and Canada data could bring life on the pair, which maintains a bearish perspective, will drop much deeper if the US data will disappoint again.
Is trading much above the 1.2580 yesterday’s low, but is under pressure because is located deep in the seller’s territory, only an USDX’s impressive rally will will force the USD/CAD to increase again in the upcoming period. Another leg higher is uncertain right now because the pair is trapped below some important resistance levels.
The Loonie could receive more support from the Canadian Manufacturing Sales, which is expected to increase by 0.9% in May, but less versus the 1.1% growth in the former reading period. On the other hand, the greenback needs a bullish spark from the US economy, the Building Permits could increase from 1.17M to 1.20M in the previous month, moreover the Housing Starts are expected to climb from 1.09M to 1.16M in June. The USD will increase only if the US data will come in line with expectations or better.
Price is trading in the red and maintains a bearish perspective on the short term as long as is trading within the minor descending pitchfork’s body. Is located also much below the 1.2678 broken static support and below the third warning line (wl3) of the former minor ascending pitchfork.
The next downside targets are at the lower median line (lml) of the minor descending pitchfork and at the 1.2460 swing low, a further USDX’s drop will send the rate towards these objectives.
Brent Oil another breakout attempt
The Brent Oil is trading in the green and is located much above the 48.58 yesterday’s closing price, technically is somehow expected to increase further.
Is still trying to break above the 48.89 static resistance, a valid breakout will attract more buyers on the short term, which will drive the rate towards the outside sliding line (SL) of the descending pitchfork. Is expected to increase after the failure to reach and retest the 38.2% retracement level and the 50% Fibonacci line (ascending dotted line).
Only a breakout above the outside sliding line (SL) will confirm a broader upside movement in the upcoming weeks.
NZD/USD reached another upside target
Price rallied and climbed much above the 0.7372 yesterday’s high and above the 0.7375 major static resistance, remains to see if will have a valid breakout above the long term resistance because has found resistance at the up sloping red line.
A false breakout above the 0.7375 level will signal an exhaustion and a potential corrective phase, however the perspective remains bullish as long as stays above the fourth warning line (WL4), only breakdown below this level will open the door for more declines.
