The price has fallen significantly in the morning and has touched fresh new lows, but has found strong support and now has squeezed in the last four hours. The USD has decreased further in the morning as the US dollar index has stayed lower, but has started to redeem ground in the last hours as the dollar index has edged higher.
The USDX has found temporary support and now is fighting hard to start a broader rebound, a further increase will help the greenback to climb much higher versus all its rivals. Personally, I believe that we’ll see only a minor bounce back on the USDX, is under massive selling pressure on the short term as long as is trapped below the 97.59 static resistance (support has turned into resistance).
The Loonie has dropped in the last hours as the Canadian Wholesale Sales have increased only by 0.9% in March, less versus the 1.1% estimate. The greenback is increasing on the mixed US data, has received support only from the Flash Services PMI, which has increased from 53.1 points to 54.0 points, beating the 53.3 estimate, signalling that the expansion continues. Unfortunately, the New Home Sales have dropped from 642K to 569K, much below the 611K estimate, while the Flash Manufacturing PMI dropped from 52.8 to 52.5 points, even if the economists have expected an increase to 53.2 points in May. Moreover the Richmond Manufacturing Index has dropped from 20 to 1 point, was reported much below the 15 point estimate.
Price has dropped and has resumed the bearish movement today, but the sellers weren’t able to hold the rate near the 1.3455 today’s low. Has failed to retest the median line (ml) of the ascending pitchfork, could increase sharply if will stay above this level without to hit this line. Maintains a bullish perspective as long as is trading above this median line (ml), remains to see what will happen in the upcoming days because is still under selling pressure after the breakdown below the 50% retracement level. Price will be attracted by the upper median line (uml) if will fail to retest the median line, this scenario will take shape only if the USDX will increase significantly in the upcoming period.