USD/CAD posted humble gains in today as the traders are waiting for the Canadian and the US data. The fundamental events will bring life on the currency pair, remains to see the direction. We may have a high volatility in the upcoming hours, so you should be careful because you could suffer a heavy loss if you will be against the price movement.

Price increased despite the USDX’s drop, technically it seems too oversold to drop further, but a disappointment from the US and good Canadian data will send the rate tumbling.

The today’s main event will be the release of the Overnight Rate, the Bank of Canada is expected to keep the monetary policy unchanged, but the BOC Rate Statement could still bring some action on the USD/CAD. Moreover, the Canadian Trade Balance could come in better versus the last release, the deficit could decrease from 3.6B to 3.2B, while the Labor Productivity could increase by 0.9% in the second quarter, less versus the 1.4% in the previous reading period.

The USD needs support from the United States economy, only some impressive data could help if to start another leg higher on the short term. So, maybe will be better to stay away during the Canadian and the US data release.

Price failed once again to reach and retest the lower median line (LML) of the major descending pitchfork, signaling and oversold and a potential rebound. Although is premature to talk about a reversal because the fundamental events could ruin a bullish perspective again.

Is pressuring the lower median line (lml) of the blue descending pitchfork, but we need to wait for its reaction, to be sure that we are in the right direction.

I’ve drawn a minor ascending pitchfork, hoping that I’ll catch an upside momentum, a retest of the lower median line (lml) will confirm it. Could increase again and could approach new highs only if will stay within the minor ascending pitchfork’s body, a breakdown will invalidate a reversal.