USD/CAD Still In The Buyers Territory
The USD/CAD decreased little today and stays much above the 1.2483 yesterday’s low. Price has come down to retest a broken resistance level and now is somehow expected to climb much higher on the short term. However, the rate could drop much deeper to test and retest some important support levels before will start another upside momentum.
Right now is very important to see what will happen on the USDX, which is located right above a critical support, a drop somewhere below the 93.30 level will signal a further drop and a USD depreciation.
Technically, the price should increase again, but unfortunately, the fundamental factors will take the lead and will drive the price. We may have a high volatility tonight after the FOMC Minutes will be released, a disappointment will demolish the USD.
USD/CAD retested the upper median line (uml) of the minor descending pitchfork and now should increase again. It could still drop along the upper median line (uml) till will reach and retest the 1.2460 static support and the median line (ml) of the blue ascending pitchfork. The next upside targets are at the median line (ML) of the major descending pitchfork and at the 1.2678 horizontal resistance.
Only a drop within the descending pitchfork’s body will signal a broader drop in the upcoming period, this scenario will take shape if the traders will be disappointed by a dovish FED.
Brent Oil Another Retest Expected
Brent increased in the yesterday’s session and climbed above the 250% Fibonacci line (descending dotted line), but failed to close above it. Now is trading in the green and tries to climb towards the median line (ML) of the major ascending pitchfork where he may find resistance again. Technically, it should drop sharply as long as is trading below the ML, only a breakout above this dynamic obstacle and above the 57.72 level will announce an increase at least till will reach the 59.50 previous high.
Gold Shows Exhaustion Signs
Gold made a false breakout above the first warning line (WL1) of the ascending pitchfork and now could drop again. Price failed to close right on the WL, signaling that the bears could take control again. It could come down to test and retest the long term 38.2% retracement level. I want to remind you that only a drop below the sliding parallel line (SL) will confirm a larger drop in the upcoming weeks.
By Olimpiu Tuns -Market Analyst
I graduated a Master in Business Administration, I am a Market Analyst / Trader on Financial Markets (forex, commodities, futures, options) for more than 6 years, I use technical and fundamental analysis for my daily activity. Founder and Market Analyst at ovtbusiness.com (Financial Markets Blog) and contributor on investing.com, actionforex.com, countingpips.com, forexalchemy.com, etc.
Trading, in general, is very risky and is not suited for everyone. There is always a chance of losing some or all of your initial investment/deposit, so do not invest money you can’t afford to lose. You are strongly advised to carry out your independent research before making any trading decisions. All the analysis, market reports posted on this site are only educational and do not constitute an investment advice or recommendation to open or close positions on international financial markets. The author is not responsible for any loss of profit or damage which may arise from transactions made based on any information on this website.
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