Daily Market Report – USD/CAD Attracted By Confluence Area August 10, 2017


USD/CAD Extends The Latest Gains

Price edges higher ahead the US and the Canadian economic figures. Is strongly bullish on the short term and looks determined to recover much more after the impressive drop. Technically is expected to climb much higher because is located in the buyer’s territory, only some poor US numbers will turn the rate to the downside again.

USD/CAD will be driven by the fundamental factors later, remains to see the direction, but a USDX’s further increase will force the pair to climb higher as well.

The US PPI may increase by 0.1% in the previous month, matching the 0.1% growth in June, while the Unemployment Claims are expected to remain steady at 240K in the previous week. The Core PPIcould resume the uptrend, is forecasted to increase by 0.2%, more versus the 0.1% in the former reporting period. The Federal Budget Balance and the Natural Gas Storage will release as well, but I don’t think that will bring anything.

Keeps rallying after the breakout above the 1.2678 static resistance (resistance turned into support) and looks determined to reach the next upside targets from the warning line (wl3) and the median line (ML) of the major descending pitchfork. Actually, the rate could be attracted by the confluence area formed by the third warning line (wl3) and the median line (ML), where he may find resistance again. However, a valid breakout through the confluence area will accelerate the upside momentum.

I want to remind you that is still under some pressure as long as is trading within the minor descending pitchfork’s body and below the median line (ML) of the major descending pitchfork. The upside momentum towards the ML is natural after the failure to reach the LML.

EUR/JPY Breakdown Needs Confirmation

Price is trading in the red and tries to take out some major support levels to be able to start a broader drop. Is trading right above the 38.2% retracement level, which represents the last obstacle that needs to be ignored.

I’ve said in the previous articles that the bulls seem exhausted and could lose control. EUR/JPY goes down as the Yen is pushed higher by the Nikkei’s amazing drop. The JP225 index plunges and is located much below the 19700 static support and is expected to drop much deeper. This situation will help the Yen to dominate the currency market.

EUR/JPY ignored the median line (ml), the upper median line (ML) and the sliding line (sl), but further sell-off will be confirmed below the 38.2% retracement level.

Gold Under First Upside Target


Gold shines despite the USD’s growth and is almost to hit a major upside target. You can see that is very close to reach and retest the 38.2% retracement level, where he could find temporary resistance. Is trading above the $1280 per ounce and is expected to climb towards the $1295 per ounce in the upcoming days.

By Olimpiu Tuns

Market Analyst

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