Price dropped aggressively in the yesterday’s trading session after the good Canadian data and on the mixed US numbers. Has increased today and has retested two important resistance levels. Could decrease further if the dollar index will slide further in the upcoming days, but we still need a confirmation that will decrease further. I’ve said in another article that we may have a selling opportunity in the upcoming days if the rate will come back to test and retest some important resistance levels (support levels have turned into resistance).

Is moving somehow sideways on the short term, so maybe will be better to stay away from this pair till well have a fresh trading signal, personally I hope that we’ll have one very soon.

The Loonie increase a little in the last hours, even if the Canadian data have come in mixed, the CPI increased only by 0.1% in the previous month, failing to reach the 0.2% estimate and the 0.4% growth in the former reading period, while the Core CPI increased by 0.1%., more versus the 0.0% growth in the former reading period.

Moreover the Common CPI increased by 1.3%, Medina CPI by 1.5% and the Trimmed CPI by 1.2%, but these numbers have only a minor impact.

Price lost altitude in the last hours and is traded much below the upper median line (UML) of the major descending pitchfork and below the 38.2% retracement level, is trapped between the lower median line (lml) of the sliding line (sl). A breakdown below the sliding line (sl) will open the door for more declines in the upcoming period.  I’ve said in the previous article that we’ll have a selling opportunity if the rate will retest the UML of the descending pitchfork.

Another increase will be confirmed only if will jump and will stabilize above the UML and above the 38.2% retracement level, we’ll see what will happen because right now we don’t have any trading opportunity.

Has dropped aggressively in the yesterday’s trading session, but failed to approcah and reach the 1.3164 previous low.