USD/CAD Rejected By Static Resistance
USD/CAD slips lower on the daily chart as the bears have taken control again. Price drops as the dollar index failed to close above the 93.81 horizontal resistance, signaling that another drop is favored on the short term. Technically the USD/CAD is expected to decrease further on the short term, but we’ll see what the fundamental events will bring.
Canada is to release the inflation figures, the CPI may increase by 0.0% in the previous month versus a 0.1% drop in June. The Core CPI will be published as well, but remains to see if will stay in the positive area for the sixth consecutive month. The Common CPI, Median CPI and the Trimmed CPI will be released as well in the afternoon. You can keep an eye on the economic calendar to see what will move the rate.
USD/CAD falls after the 1.2678 retest and could approach the fourth warning line (wl4) of the former minor ascending pitchfork. Is expected to reach and retest this dynamic support after the failure to retest the wl3 and more important the median line (ML) of the major descending pitchfork. Is still under a lot of pressure as long as is trading within the descending pitchfork’s body and much below the median line (ML) of the major descending pitchfork.
A retest of the wl4 followed by a minor increase will signal a bullish momentum, which could ignore the mentioned resistance levels, only a drop below it will validate a further drop.
NZD/USD Poised For More Gains
Price rallied after the retest of the 38.2% retracement level and now is trying to take out the dynamic resistance from the fourth warning line (wl4). Will climb much higher if will stabilize above the warning line, but I want to remind you that failure will signal a major drop. Has found strong support at the red downtrend line and now is fighting hard to recover. We had a false breakdown below the 38.2% retracement level, meaning that an increase towards the 23.6% is favored. Technically, is expected to retest also the third warning line (WL3) before will make the next significant move.
Brent Oil eyeing new highs
The Brent Oil increased significantly since yesterday and seems poised for a further increase in the upcoming period. Is trading above the $51.20 per barrel and could approach the 53.03 static resistance if the USD/CAD will slide further. A throwback was expected after the US Crude Oil Levels amazing drop, the indicator was reported at -8.9 million barrels in the previous week, much lower versus the -3.0M estimate. Only a breakdown from the minor ascending channel will signal a further drop.
By Olimpiu Tuns
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