Daily Market Report – USD/CAD Moving Higher To Test Sellers August 15, 2017

USD/CAD Edges Higher

Price climbs higher after the Friday’s massive drop. It is trading in the green again as the dollar index has managed to rebound and to recover after the minor decrease. Looks like that the behavior will change on the USDX on the daily chart, signaling that we may have a larger rebound.

USDX has started to make higher lows on the bullish pressure, but maybe he’ll need a bullish spark from the US economy to be able to climb towards fresh new highs.

The greenback will dominate the currency market if the USDX will have enough energy to jump and stabilize above the 93.81 and more importantly above the 94.00 psychological level. We’ll have a rebound if will stay above the 92.55 previous low.

Looks like we had a false breakdown below the 1.2678 static support, a minor consolidation above it will confirm a further increase. As you already know, the rate could be attracted by the median line (ML) of the major descending pitchfork. The median line is acting as a magnet, is expected to approach and reach also the uper median line (uml) of the minor descending pitchfork after the failure to retest the median line (ml).

A major upside movement will appear only if it will take out the mentioned resistance levels, this scenario will happen if the USDX will jump above the 94.00 psychological level.

You have to be careful because a failure to reach and retest the mentioned resistance levels will send the rate down quickly.

Brent Oil Extends The Sell-Off

Brent Oil drops like a rock and is very close to hit some important support levels. I’ve said in the previous analysis that the price may drop on the short term because was too overbought. Technically was expected to drop after the last false breakout above the 53.03 static resistance. Is attracted by the confluence between the sliding line (SL) with the minor uptrend line (dotted line). A breakdown through the mentioned support area will accelerate the sell-off. Will drop much deeper if will breakout from the minor ascending channel.

EUR/CHF Registered An Amazing Jump

Price rallies and looks to stabilize in the green zone if possible. Has extended the Friday’s rally and tries to recover after the immense drop. I’ve said in the previous week that the retreat could be completed after the failure to close on the upper median line (uml) of the minor ascending pitchfork.

By Olimpiu Tuns

Market Analyst

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