Price increased today as the USD has received a helping hand from the USDX, which has increased a little after the Friday’s massive drop. USD/CAD is located in a major support area, needs a bullish spark to be able to really start a bounce back
The outlook is bearish because the dollar index could decrease further in the upcoming days till will reach the 92.49 static support. USD/CAD is under massive pressure on the Daily chart, could drop anytime, we’ll see what impact will have the US and the Canadian data.
The Canadian RMPI is forecasted to drop by 3.2% in June, more versus the 1.8% decrease in the former reading period, while the IPPI is expected to decrease by 0.3%, more compared to the 0.2% drop in the former reading period.
You should know that the US data could shake the currency market, the Chicago PMI may drop from 65.7 to 60.8 points, signaling an expansion slowdown, while the Pending Home Sales are expected to increase by 0.9%, more after the 0.8% drop in the previous reporting period.
USD/CAD decreased sharply on Friday and invalidated the breakout above the fourth warning line (wl4) and above the lower median line (black down sloping line). Right now is pressuring the 1.2460 broken support, we’ll see what will happen in the upcoming hours as the fundamental factors should take the lead.
A good US data and poor Canadian reports will help the USD to drag the price higher, but another disappointment from the US will send the rate much much below the 1.2413 level. We may have a larger rebound only if the rate will come back and will stabilize above the 1.2460 critical support.
