By Mexgroup.com

USD/CAD Squeezing Ahead Canadian Data

Price dropped further today and extended the impressive sell-off, but has found temporary support at the 1.2061 level. USD/CAD has started to increase in the last hours, but this rebound could be only temporary because it could drop further if the Canadian data will come in better than expected. The minor throwback is natural after the immense drop, it seems too oversold to resume the bearish momentum, but the fundamental factors will lead the rate again in the upcoming hours.

As you already know, Canada is to release high impact data, the Employment Change could increase from 10.9K to 17.8K in August, could reach the highest level of the last two months and could lift the Loonie even more. The Unemployment Rate could remain steady at 6.3% for the second month in August. Moreover, the Capacity Utilization Rate could be reported at 84.9%, higher versus the 83.3% in the former reading period.

Price has dropped and reached the 150% Fibonacci line (down sloping line), this could represent a major dynamic support if will hold. USD/CAD dropped below this line, but failed to stay there. Technically a false breakdown signals a rebound at least till the lower median line (LML) of the major descending pitchfork.

Price failed to reach and retest the inside sliding line (sl) of the minor descending pitchfork, signaling a potential exhaustion, but is premature to talk about this because the fundamental factors could lead it towards fresh new lows.

Technically a failure to reach the lower median line (lml) and the siding line (sl) shows an oversold and a potential leg higher.

EUR/JPY Erases The Lates Gains

EUR/JPY drops and is almost to reach the 129.36 week low and the inside sliding line (SL) of the major ascending pitchfork. I’ve said in the last reports that technically speaking, the rate should drop further in the upcoming period after the failure to reach and retest the red uptrend line and after the failure to stay above the median line (ml). A valid breakdown below the sliding line (SL) will confirm a further drop in the upcoming period.

EUR/GBP On The Move

EUR/GBP is trading in the red after the retest of the median line (ml) of the minor ascending pitchfork. The next downside target will be at the 50% Fibonacci line (ascending dotted line), but it could drop at least till will reach the 0.9000 psychological level. Could be attracted by the confluence area formed by the ML with the lower median line (lml).

By Olimpiu Tuns

Market Analyst

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The post Daily Market Report – USD/CAD Erases Everything In Its Way September 08, 2017 appeared first on mexgroupblog.