The USD/CAD increased a little today and continues to stay in the green zone, but needs a bullish spark to be able to climb much higher in the upcoming period. Price decreased a little in the previous days, but this could be only temporary. It could retest also the median line (ml) of the blue ascending pitchfork and could resume the upside movement.
USD/CAD tries to increase a little today as the USDX is fighting hard to stay higher and near the 93.81 horizontal resistance. The US and the Canadian data should bring life on the USD/CAD in the afternoon, the fundamental data will take the lead. The Canadian Trade Balance could increase a little from -3.0B to -2.6B, a lower deficit will lift the Loonie. On the other hand, the US trade deficit could decrease from 43.7B to 42.7B, which is very good for the USD, the Unemployment Claims are expected to drop from 272K to 266K, while the Factory Orders could increase by 1.0% versus a 3.3% drop in the former reading period.
Price decreased a little after the failure to reach and retest the upper median line (uml) of the minor descending pitchfork, but only a valid breakdown below the 1.2460 and below the median line (ml) of the blue ascending pitchfork will confirm a further drop. A valid breakout from the minor descending pitchfork will validate an increase towards the 1.2678 level.
