USD/CAD is the rebound completed? January 5, 2017

The USD/CAD has increased a little today after the impressive yesterday’s drop, the current rebound could be only temporary , has come back only to test a broken static support. Has increased also because has found temporary support, but the price remains under selling pressure as the USDX is trading in the red, the index has fallen below an importnat confluence area , which has represented a very strong support. Remains to see what will happen later when the United States and Canada will publish the economic figures, the fundamental factors could move the price, so you shoul be careful because we may have some volatility in the afternoon.
The US is to release the Adp Non-Farm Employment Change, which could be reported at 171K in December, less than the 216K from November, the USD will increase if the data will come in better than expected, while the Unemployment Claims could drop from 265K to 262K in the previous week. Moreover the ISM Non-Manufacturing PMI could drop from 57.2 to 56.6 points, signalling that the expansion will slow down, while the Final Services PMI could remain steady at 53.4 points for the second month in December 2016. The US will release also the Crude Oil Inventories and the Natural Gas Storage, the Crude Levels could drop to -1.8 million barrels in the previous week, this situation will force the Oil to increase, the Loonie will appreciate as well.
Canada will publish the RMPI, which could drop by 1.5% in November, the indicator could drop again after the 3.3% growth from the previous reading period, while the IPPI may increase by 0.2%, less versus the 0.7% in the former reporting period.
The fudanemtal events will bring life on the USD, remains to see the direction, the dollar will punge if the figures will come worse than expected.

The price has edged lower in the yesterday’s trading session, has reached new lows, but has found temporary support at the 1.3251 static support and now has come back to test and retest the broken 38.2% retracement level. You can see that the price has failed once again to close above the 50% retracement level, so everyone is wondering if the rebound is completed. The price is moving somehow sidewys on the short term, between the 50% retracement level and the 1.3119 horizontal support, the price will breakdown from this range if will have enough energy to close below the second warning line (WL2) of the former ascending pitchfork.

One thought on “USD/CAD is the rebound completed? January 5, 2017”

  1. THIS ONE WILL BE A BUY NEAR THE END OF NEXT WEEK, BUYING ZONE @ 23.6%

Leave a Reply