By Forex Signs, Inc.
Since the double top reversal pattern of USDCHF pair noted last week, the pair has been continuously striding down. At the opening of today’s session, the price level opened at 0.9580. The initial price is not the pair’s resistance level. Seven candle sticks after at H1 chart, the pair had a bearish breakout. The fall went further down as the following candle stick tries to create new support level at 0.9542. In the previous trade, an Elliot wave was perceived at H1 chart. Before the trade ended yesterday, the price level had a reversal which only reached 50 percent of wave iii using the Fibonacci retracement. Today, if Elliot wave will be followed, at the time of writing, the pair is at wave i. Chances are, the trend is still pursuing a bearish market. For three days now, the %R (14) is lingering at an oversold level. It tried to go away but only reached values between -60 and -50. The fluctuating increases are most likely to be corrections only. However, once the signal touches a little above -50, there is a slight chance of a bullish reversal. To further test the downward trend, the Alligator indicator strongly indicates a sell activity as the lips of the gator is placed under its teeth. The distances of each part are significant and there are no clues that the gator will sleep at any time today.
US Dollar May Rally Against the Loonie With Good Economic Data
Economists believe that the US dollar may be able to mount a rally with good economic data before the Christmas break, starting off with final GDP. This quarterly report is expected to post another increase of 2.8 percent after last quarter’s report of 2.5 percent. This increase in GDP may be attributed to the unexpected inventory growth. Existing home sales is also expected to go increase to 4.72M from its last report of 4.43M. This increase gives an impression that the housing market is getting stable. If these indicators give out a better than anticipated numbers, expect the US dollar to make progress.
Meanwhile, Canada has no scheduled economic report for today, but any reports that might affect risk sentiment towards this currency should give some movement to the Loonie.
About the Author
Forex Signs, Inc., Founded in 2006 in Wall Street, New York City, FSI relentlessly strives to be the premier Forex brokerage company in the industry by providing exclusive and unmatched trading and investment related services while constantly developing innovative solutions that cater to the vast requirements of both individual and institutional market participants.
