By Mexgroup.com
USD/CAD At 2-Years Low
The currency pair plunged aggressively after the BOC’s decision to hike the rate, now is located at fresh new lows. USD/CAD dropped more than 230 pips in the yesterday’s session and could hit new lows if the USDX slides further.
Has registered an amazing drop even if the dollar index remained steady near the 92.20 level, but we’ll see what the US data will bring today.
The greenback needs a bullish spark to be able to increase versus all its rivals, could be helped by a dovish ECB. You should keep an eye on the economic calendar because this is filled with high impact data.
Technically, the USD seems too oversold to drop further, a rebound is favored versus all its rivals. The USDX’s bears seem a little exhausted on the daily chart.
Free Reports:
Get Our Free Metatrader 4 Indicators - Put Our Free MetaTrader 4 Custom Indicators on your charts when you join our Weekly Newsletter
Get our Weekly Commitment of Traders Reports - See where the biggest traders (Hedge Funds and Commercial Hedgers) are positioned in the futures markets on a weekly basis.
USD/CAD is on a declining path and continues to be under an immense selling pressure. Has squeezed a little in the US session and now is fighting hard to recover. Technically, it seems oversold, but we don’t have a confirmation yet.
USD/CAD dropped aggressively, but failed to approach and reach the lower median line (lml) of the minor descending pitchfork, signaling a potential reversal. It’s premature to talk about a reversal at this moment as long as the rate is trading under some important resistance levels (support turned into resistance).
A bullish confirmation could come if the rate will close above the lower median line (LML) of the major descending pitchfork again.
AUD/USD Losing Altitude
AUD/USD dropped significantly in the morning as the Australian data have disappointed. The Retail Sales have increased only by 0.0% in July, less versus the 0.2% estimate, while the Trade Balance dropped from 0.89B to 0.46B, even if the economists have predicted an increase to 0.93B.
Price failed to approach and reach the 0.8027 Tuesday’s high, signaling that the bulls are exhausted. Technically, a drop towards the lower median line (lml) is expected in the upcoming days.
EUR/JPY Downside Perspective Clouded
EUR/JPY rebounded in the yesterday’s session and closed above the upper median line (UML) of the major ascending pitchfork. Price is pressuring the dynamic support, a false breakdown will signal another bullish momentum. The failure to reach the confluence formed by the sliding line (sl) with the upper median line (uml) signals an increase as well.
By Olimpiu Tuns
Market Analyst
Risk Disclaimer:
Trading, in genera,l is very risky and is not suited for everyone. There is always a chance of losing some or all of your initial investment/deposit, so do not invest money you can’t afford to lose. You are strongly advised to carry out your independent research before making any trading decisions. All the analysis, market reports posted on this site are only educational and do not constitute an investment advice or recommendation to open or close positions on international financial markets. The author is not responsible for any loss of profit or damage which may arise from transactions made based on any information on this web site.
The post Daily Market Report – USD/CAD Demolished By BOC September 07, 2017 appeared first on mexgroupblog.