The USD/CAD is trading in the red and looks determined to hit fresh new lows today, even if is trading above the 1.3235 yesterday’s low. The price has decreased today and the USDX remains under selling pressure, the index could still challenge the 99.84 static support in the coming hours if the United States economic figures will disappoint, will be better if you’ll keep an eye on the economic calendar because the Canada is to release high impact data as well. The fundamental factors could move the rate in the United States trading session.
The Statistics Canada will publish the Trade Balance report later, the trade deficit could decrease from 4.1B to 2.1B, the Loonie could receive a helping hand if the indicator will come in line with expectations of better. The Ivey PMI could increase from 59.7 to 59.9 points, so the Loonie could resume the upside momentum.
On the other hand the USD could be saved from the downside by the US figures, the numbers should impress to be able to do that. The United States Trade Balance could decrease further, from -36.4B to -41.5B in October, could reach the lowest level of the last 4 months, while the Revised Nonfarm Productivity could increase by 3.2%. Moreover the Factory Orders may increase by 2.5% in October.
The price is harassing the 1.3251 horizontal support after the yesterday’s false breakout, a drop below this level followed by a retest will open the door for more declines, however the price is expected to drop further after the breakout from the ascending channel, you can see on the Daily hart that the price has managed to take out the major support from the sliding parallel line.
Could drop much deeper also because is located below the 38.2% retracement level, has also escaped from the minor descending pitchfork, so technically speaking, the perspective remains bearish on the short term and could approach the median line (ml) of the major descending pitchfork.
We’ll have a minor rebound only if the 1.3252 static support will hold and if will climb again inside the minor pitchfork’s body.