Market Overview

MultiBank Exchange Group: USD/CAD The Silence Before The Storm, July 28, 2017

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USD/CAD Canadian and US data eyed

The currency pair decreased today and is trying to correct after the yesterday's impressive rally, is trading in the red also because is still under massive selling pressure. Remains to see how will react after the United States and Canadian data will be released.
You should be careful because the economic figures will bring life on the currency market, we may have a high volatility on this pair and you don't want to suffer a heavy loss.
The United States Advance GDP may increase by 2.5% i the second quarter, more versus the 1.4% in Q1, while the Advance GDP Price Index could increase by 1.3%, less compared to the 1.9% in the previous reading period. The Employment Cost Index is expected to increase by 0.6% in Q2, less versus the 0.8% in Q1, while the Revised UoM Consumer Sentiment could climb from 93.1 to 93.2 points. The greenback needs a strong support from the US economy to be able to resume the yesterday's rebound.

Price rebounded in the yesterday's session and invalidated the breakdown below the 1.2460 long term support and below the confluence formed by the warning line (wl4) with the lower median line (lml) of the black descending pitchfork. Has slipped lower today and awaits the economic data, could increase further if the US numbers will impress.
Is trading right below the 1.2450 psychological level and could come down to retest the support levels, only a rejection from the mentioned downside obstacles will signal a reversal.
You can see that we had a false breakdown below from the black descending pitchfork, but the failure to reach the lower median line (lml) of the blue descending pitchfork and the lower median line (LML) of the major (red) descending pitchfork could send the rate much higher again, but unfortunately will be driven by the fundamental factors.
USD/CHF approaches another target

Price rallies and extends the latest gains, you could see that is very close to hit the median line (ml) of the descending pitchfork, where he could find temporary support. Has increased aggressively, ignoring the USDX's drop, is trading much above the 0.9634 broken resistance.
A valid breakout above the median line (ml) will confirm a further increase, this scenario could take shape only if the US data will come in better later.
NZD/USD turned to the downside

Price is going down after the false breakout above the third warning line (WL3) of the former descending pitchfork. Has ignored the 0.7484 static support (resistance turned into support) and now is going down, a retest of the WL3 will bring us a perfect selling opportunity.
By Olimpiu Tuns
Market Analyst

The preceding article is from one of our external contributors. It does not represent the opinion of Benzinga and has not been edited.

Posted-In: Forex Markets

 

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