By Mexgroup.com
USD/CAD Facing Tough Resistance
The currency pair is trading in the red right now and tries to retreat a little after the yesterday’s amazing rally. Remains to see what will happen later as the United States is to release important economic data. The fundamental factors will drive the rate so you should be very careful not to suffer a heavy loss.
We may have some volatility in the US trading session, the USD needs a helping hand from the United States economy, but remains to see if will receive one.
The Building Permits could decrease from 1.23M to 1.22M in the previous month, while the Current Account is expected to increase from -117B to -115B in the Second Quarter. Moreover, the Housing Starts may increase to 1.17M, from 1.16M, while the Import Prices could increase by 0.4%, beating the 0.1% growth in the former reading period.
Price dropped a little today, but continues to pressure the lower median line (LML) of the red descending pitchfork and the median line (ml) of the blue descending pitchfork. Only a valid breakout above these levels will confirm a further increase. However, a rejection from the confluence area formed at the intersection between the LML with the median line (ml) will send the rate towards the 150% Fibonacci line (down sloping red line). I’ve drawn a minor blue ascending pitchfork hoping that I’ll catch a broader upside movement, technically is expected to reach the median line (ml), but a disappointment from the US later will send the rate tumbling.
Free Reports:
Brent In The Buyers Territory
The Brent Oil rallied today and tries to stay higher despite the yesterday’s drop. Price maintains a bullish perspective as is trading in the buyer’s territory, the major upside target remains at the median line (ML) of the major ascending pitchfork. I’ve said in the last weeks that it could reach the $57 per barrel very soon.
Is trapped within the ascending channel, so it should approach and reach fresh new highs in the upcoming period even if will make a small correction.
NZD/USD Moving Higher To Test The Sellers
Price rallies again, but remains to see if will have enough directional energy to reach and retest the third warning line (WL3) of the major descending pitchfork. Has shown some exhaustion signs in the last days because has failed to stabilize above the 38.2% retracement level. Only a valid breakout above the WL3 will confirm a further increase, while a failure to reach it will signal another leg lower.
By Olimpiu Tuns
Market Analyst
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The post Daily Market Report – USD/CAD slides ahead US data September 19, 2017 appeared first on mexgroupblog.
