USD/CAD changed little today and maybe the traders wait for the Canadian date before will take action again. You should be very careful in the afternoon as the pair will be moved by the fundamental data. The Canadian figures could shake the price, so maybe will be better to stay away during the economic data release.

USD/CAD dropped again after a false breakout above a dynamic resistance. It is pressuring a crucial support line and it was almost to reach another dynamic support. Some good Canadian figures will force the pair to increase on the short term.

Price is trapped within a down channel, so the perspective remains bearish as long as the rate stays within this pattern.

The Canadian CPI is expected to drop by 0.1% in August, versus a 0.5% growth in the former reading period. The Core CPI, Trimmed CPI, Median CPI and the Common CPI will be released as well. Moreover, the Retail Sales could increase by 0.3% after the 0.2% drop in the former reading period, while the Core Retail Sales could increase by 0.6% versus a 0.1% drop in June.

The US is to release the Flash Manufacturing PMI and the Flash Services PMI data, the indicators are expected to increase.

You can see that the rate is pressuring the downside 50% Fibonacci line of the major ascending pitchfork. It has slipped below this dynamic support, but it has failed to reach the upside 50% Fibonacci line of the descending pitchfork. It is trapped between the upper median line and the 50% line, so the perspective remains bearish.

You can notice that the 50% line of the descending pitchfork represents a very strong dynamic support, a valid breakdown below it will confirm a larger downside movement in the upcoming period. A false breakdown below it or a failure to reach it will announce a potential rebound towards the upper median line (uml).