The USD/CAD has edged lower aggressively in the last three hours and has touched fresh new lows, has fallen below some important support levels and looks determined to embrace new lows in the coming days. The rate has decreased as the USDX has fallen sharply in the last hours, the index had dropped as much as 101.29 previous low, a drop below this level will attract more sellers, which will force the greenback to depreciate further versus the other major currencies.
I’ve said in my articles that we could have a larger decrease on the USD in the coming weeks, the USDX’s drop below the 102.54 static support has signalled that we could have a larger decrease.
The rate has decreased sharply in the last hours and has managed to ignore the 1.3188 static support and the median line (ml) of the descending pitchfork, the major downside target remains at the median line (ML) of the major descending pitchfork, could be attracted by the confluence area formed at the intersection between the 1.3047 static support with the median line (ML) of the major descending pitchfork.
The rate was pushed lower by the fundamental factors, remains to see what will happen in the coming days because the US is to release high impact data in the last days of the current week, the fundamental factors will move the price in the coming days, so you should be careful not to suffer a heavy loss.
The price had increased in the European trading session, has jumped above the 1.3251 and above the second warning line (wl2) of the former ascending pitchfork, but the bears have stepped in and have sent the price again below the median line (ml) of the descending pitchfork. A retest of the median line (ml) of the descending pitchfork will bring us a good selling opportunity, could try to approach even the lower median line (lml) of the descending pitchfork if we’ll have a larger drop on the USDX, the rate could find support also at the third warning line (wl3) of the former ascending pitchfork. We’ll have another leg higher only if the price will fail to stay below the median line (ml).