The USD/CAD has increased in the second part of the day and has managed to erase the morning losses, maintains a bullish perspective despite the USDX’s drop. Technically should increase further and should hit new highs because has managed to take out an important dynamic resistance.
Is somehow moving sideways on the short term, is approaching the a major static resistance, the Loonie has lost significant ground also because the Canadian data have come in worse than expected. The greenback will need support from the United States economic data tomorrow to be able to appreciate again, the US data could bring life on the currency market.
The US is to release high impact data tomorrow, so the fundamental factors will drive the rate again, remains to see the direction, will be better to keep an eye on the economic calendar because you’ll need to know what will move the price.
The Loonie has taken a hit from the Wholesale Sales indicator, which has dropped by 0.2% in February, even if the traders have expected to see a 2.1% growth, has fallen after the 3.0% growth in the previous reading period. The economic indicator has dropped after 4 increasing months and has punished the Loonie.
Price has increased in the afternoon and is very close to touch the 1.3525 Friday’s high, the near term static resistance is at the 1.3534 level, the major upside obstacle is at the 50% retracement level, remains to see what will happen when will hit this level.
Is still bullish as long as is trading inside the minor ascending pitchfork, technically should increase after the breakout above the sliding line (sl) of the major descending pitchfork. The long term upside movement will resume only if the rate will jump and will stabilize above the 50% retracement level, another failure to climb above this obstacle will send the rate tumbling again.
The buyers have managed to maintain the rate above the third warning line (wl3) of the former major ascending pitchfork, but unfortunately the USDX has slipped again below the 99.12 broken support.