Daily Market Report – USD/CAD Demolished By BOC September 07, 2017

USD/CAD At 2-Years Low

The currency pair plunged aggressively after the BOC’s decision to hike the rate, now is located at fresh new lows. USD/CAD dropped more than 230 pips in the yesterday’s session and could hit new lows if the USDX slides further.

Has registered an amazing drop even if the dollar index remained steady near the 92.20 level, but we’ll see what the US data will bring today.

The greenback needs a bullish spark to be able to increase versus all its rivals, could be helped by a dovish ECB. You should keep an eye on the economic calendar because this is filled with high impact data.

Technically, the USD seems too oversold to drop further, a rebound is favored versus all its rivals. The USDX’s bears seem a little exhausted on the daily chart.

USD/CAD is on a declining path and continues to be under an immense selling pressure. Has squeezed a little in the US session and now is fighting hard to recover. Technically, it seems oversold, but we don’t have a confirmation yet.

USD/CAD dropped aggressively, but failed to approach and reach the lower median line (lml) of the minor descending pitchfork, signaling a potential reversal. It’s premature to talk about a reversal at this moment as long as the rate is trading under some important resistance levels (support turned into resistance).

A bullish confirmation could come if the rate will close above the lower median line (LML) of the major descending pitchfork again.

AUD/USD Losing Altitude

AUD/USD dropped significantly in the morning as the Australian data have disappointed. The Retail Sales have increased only by 0.0% in July, less versus the 0.2% estimate, while the Trade Balance dropped from 0.89B to 0.46B, even if the economists have predicted an increase to 0.93B.

Price failed to approach and reach the 0.8027 Tuesday’s high, signaling that the bulls are exhausted. Technically, a drop towards the lower median line (lml) is expected in the upcoming days.

EUR/JPY Downside Perspective Clouded

EUR/JPY rebounded in the yesterday’s session and closed above the upper median line (UML) of the major ascending pitchfork. Price is pressuring the dynamic support, a false breakdown will signal another bullish momentum. The failure to reach the confluence formed by the sliding line (sl) with the upper median line (uml) signals an increase as well.

By Olimpiu Tuns

Market Analyst

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