The USD/CAD has edged lower today and is very close to erase the Thursday’s gains, is approaching an important confluence area, is attracted by this support area, remains to see what will happen in the coming hours  because a breakdown will attract more sellers, which will lead the price towards new lows again.

The USD is going down as the USDX is trading in the red, the index has dropped as much as 100.19 level and looks unstoppable on the short term. The USDX has fallen below 100.31 previous low and remains under massive selling pressure, a further drop will force the dollar to drop further as well.

The Loonie has increased even if the Canadian Wholesale Sales rose only by 0.2% in November, less versus the 0.3% prediction, the economic indicator has continued to increase after the 1.3% growth in October. The pair could turn to the downside again if the USDX will drop deeper, the index is approaching the 100.00 psychological level and most likely will ignore this obstacle and will drop further, the dollar will be weakened by the USDX drop.

You can see that the price is very close to hit the major confluence area formed at the intersection between the 1.3251 static support with the second warning line (wl2) of the former ascending pitchfork, could drop further if will break below this support area, we could have even a selling opportunity if the price will come to test and retest the second warning line (wl2).

Could drop sharply if will ignore the confluence area, is somehow expected to drop further after the failure to reach the upper median line (ml) of the descending pitchfork. We’ll have a perfect selling opportunity if the price will close below the second warning line (wl2) and if will come higher to test the confluence area formed at the intersection between the upper median line (uml) with the warning line (wl2).

I want to remind you that the perspective is bearish on the short term as long as the price is trading inside the minor descending pitchfork.