USD/CAD downside paused
Price changed little today and awaits the Canadian data to bring life again, we may have some action in the upcoming hours as the fundamental factors will take the lead again. Maintains a bearish perspective on the Daily Chart, will drop much below the 1.2540 previous low if the Canadian data will come in better than expected.
You should be careful in the afternoon because we may have a high volatility if we’ll economic data will produce a big surprise, will be better to keep an eye on the economic calendar to see what will move price till the end of the day.
Canada is to release the inflation and the retail sales reports, the CPI could decrease by 0.1% in June, could drop in the negative territory after 6-months, the Core CPI will be released as well by Statistics Canada. The Retail Sales could increase by 0.3% in May, less versus the 0.8% growth in the previous reporting period, while the Core Retail Sales could increase only by 0.0% in May, less versus the 1.5% in the former reading period.
Price stays above the 1.2540 yesterday’s low, could drop much below this level if the Canadian data will come in better, only a huge disappointment will send the rate higher. The sentiment is bearish as long as is trading within the descending pitchfork’s body.
The next major downside target will be at the 1.2460 swing low, could rebound from there if the USDX will found strong support as well. Could found support also at the fourth warning line (wl4) of the former minor ascending pitchfork. Will start another leg higher only after a minor accumulation, needs to recapture more directional energy before will jump much higher. A failure to reach the 1.2460 and the lower median line (lml) will signal an oversold and a potential rebound.
Gold buying opportunity
The yellow metal resumes the minor rebound, has managed to climb above two significant resistance level and is trying to take out another in the upcoming hours. Will climb much above the 1250 psychological level if the USDX will drop much deeper.
Continues to move sideways on the Daily chart, has broken above the upper median line (UML) of the major descending pitchfork and above the upper median line (uml) of the minor descending pitchfork and now is pressuring the 38.2% retracement level. A valid breakout above the UML and above the upper median line (uml) will favor an increase towards the major 38.2% retracement level.
AUD/USD dropped as expected
AUD/USD decreased today, this was natural after the impressive rally, but the correction could be only temporary because the USDX could slide further. Has dropped after the fasle breakout above the warning line (wl1) of the minor ascending pitchfork, now has support again at the upper median line (uml), the perspective remains bullish as long as stays above this level.
