Price increased a little in the morning as the USDX has rebounded. The dollar index continued to trade in the green after the yesterday’s minor increase. However, you should know that the dollar index remains under pressure on the short-term and could drop further despite the minor increase.

The USDX’s yesterday’s rebound could be temporary and the rate could towards the 89.00 psychological level in the upcoming days. USDX moves in range on the short-term and only a sharply increase will turn the USD/CAD to the upside.

The USD/CAD remains bearish despite a minor increase. It could be attracted by a dynamic support in the upcoming days. Only a false breakdown or a rejection will signal a reversal on the short term. Right now is premature to talk about a significant increase.

However, the BOC Press Conference could shake the price in the afternoon. The BOC is expected to maintain the Overnight Rate steady at 1.25%, but a disappointment after the BOC Rate Statement and after the BOC Monetary Policy report could ruin the Loonie.

The US is to release the Crude Oil inventories in afternoon, some poor data could lift the Loonie as the Oil price will increase.

Price could still approach and reach the median line (ML) of the red ascending pitchfork. The bearish momentum was paused, but the bias remains bearish.

As I’ve said higher, the dollar index could drop further on the short term despite the current rebound and will force the USD to drop against all its rivals. You should stay away from this pair in the afternoon because the BOC could bring a high volatility. Right now we don’t have any trading opportunity, but I hope that we’ll have one very soon.

A breakdown below the median line (ML) of the ascending pitchfork will signal a further drop in the upcoming period.