USD/CAD Consolidating The Lates Gains
The USD/CAD increased a little today and continues to stay in the green zone, but needs a bullish spark to be able to climb much higher in the upcoming period. Price decreased a little in the previous days, but this could be only temporary. It could retest also the median line (ml) of the blue ascending pitchfork and could resume the upside movement.
USD/CAD tries to increase a little today as the USDX is fighting hard to stay higher and near the 93.81 horizontal resistance. The US and the Canadian data should bring life on the USD/CAD in the afternoon, the fundamental data will take the lead. The Canadian Trade Balance could increase a little from -3.0B to -2.6B, a lower deficit will lift the Loonie. On the other hand, the US trade deficit could decrease from 43.7B to 42.7B, which is very good for the USD, the Unemployment Claims are expected to drop from 272K to 266K, while the Factory Orders could increase by 1.0% versus a 3.3% drop in the former reading period.
Price decreased a little after the failure to reach and retest the upper median line (uml) of the minor descending pitchfork, but only a valid breakdown below the 1.2460 and below the median line (ml) of the blue ascending pitchfork will confirm a further drop. A valid breakout from the minor descending pitchfork will validate an increase towards the 1.2678 level.
GBP/USD Very Heavy
Price drops further on the short term and should hit the 250% Fibonacci line (ascending dotted line), which represents a strong dynamic support. I’ve said in the previous days that the rate is expected to be attracted also by the median line (ml) of the minor red descending pitchfork, a breakdown below the mentioned support levels will confirm a larger drop.
GBP/JPY Hit Another Downside Target
The GBP/JPY has finally reached the 148.46 horizontal support as predicted. Is strongly bearish on the short term, a valid breakdown will announce a further drop and will bring us a great selling opportunity. The next major downside target will be at the first warning line (WL1) of the ascending pitchfork.
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.
The post Daily Market Report – USD/CAD Needs A Bullish Spark October 05, 2017 appeared first on mexgroupblog.