USD/CAD Goes South
Admirals | Aug 15, 2013 07:40AM ET
Looks like USD/CAD just finished the bullish correction that retraced more than half of last week’s downswing. The correction was closed in a rising wedge formation (blue lines). Thursday starts with a global tendency to weaken the American dollar, and this movement allowed the price to breakout from the wedge. First downswing stopped at the 23.6 Fibonacci level, and we can anticipate that this level will be breached soon as it did not cause any major reversal. The aim for this movement is a low from that of Friday’s.
A bearish scenario will be denied once price comes back to the wedge formation. Today, at the beginning of the American session, we will get many data from the American market like the CPI and the unemployment claims. Later, the market will find out about the BoC review, but it should not have a huge impact on this pair.
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