Price is trading in the green and looks determined to climb much higher on the short term. The greenback received a helping hand from the United States data. On the other hand the Loonie was punished by two high impact reports, which have come in worse than expected.

USD/CAD rallies as the USDX has managed to jump much above the 93.00 psychological level, the index erased the morning losses and now looks to trade higher on the short term. A USDX’s further increase will force the greenback to appreciate versus all its rivals.

The Loonie taken a hit from the Employment Change was reported at 10.9K in July, much below the 13.1K estimate and compared to the 45.3K estimate, reaching the lowest level of the last 3-months, while the Trade Balance has come in worse than expected, the deficit increased from 1.4B to 3.6B, even if the estimate was 1.3B. The Canadian Unemployment Rate dropped unexpectedly in July, from 6.5% to 6.3%, despite that the economists have forecasted a 6.5% rate.

The greenback could climb much higher versus all its rivals as the US NFP has impressed, the USD needed a bullish spark and has received one.

Is trading within a descending channel and now is trying to recover after the amazing drop, is very close to reach and retest the 1.2655 static resistance level. Technically should approach and reach the upside line of the descending channel in the upcoming period.

USD will dominate the currency market if the US data will come in better in the upcoming week, was too oversold to drop further and now is rallying versus all its rivals. The median line (ML) of the major descending pitchfork is expected to attract the price as is acting as a magnet. Could approach and reach the median line (ML) after the failure to reach the lower median line (LML) of this pitchfork.

The false breakdown below the lower median line (lml) of the blue descending pitchfork has signalled a reversal on the short term, but we needed a confirmation that will increase further because was under pressure.