USD/CAD: Is The Rebound Complete?
MultiBank Exchange Group | Nov 02, 2017 11:55AM ET
USD/CAD Turned To The Downside
The currency pair dropped and resumed the yesterday's minor bearish candle. Price dropped today as the USDX has slipped lower as well. USDX squeezed in the last hours as we had some good US data in the afternoon, the index maintains a bullish perspective despite the minor drop. The dollar index stays above the 94.50 psychological level and could resume the upside movement as the Federal Reserve has left the door wide open for another hike in December. The dollar dropped sharply even if the US Unemployment Claims have dropped from 234K to 229K in the previous week, the traders have expected to see an increase to 235K.
It is almost to hit the upper median line (uml) of the blue ascending pitchfork. Price seems exhausted on the Daily chart, a valid breakdown below the upper median line (uml) will signal a further drop towards the median line (ML) of the major red descending pitchfork. The bulls seem exhausted after the failure to push the rate above the 1.2916 previous high. Price could move in range, and could consolidate the latest gains. The major upside targets are at the 1.3047 and higher at the upper median line (UML) of the major red descending pitchfork.
USD/JPY Another False Breakout?
The pair dropped after the yesterday's increase and could invalidate the breakout above the median line (ml) of the ascending pitchfork and above the long term 23.6% retracement level. Price shown a minor exhaustion and has dropped as the Nikkei stock index slipped lower as well. We'll see what will happen because the JP225 maintains a bullish perspective on the short term, has broken above a dynamic resistance and now has come down only to retest the broken level.
AUD/USD Another Leg Higher?
Get The News You Want
The rate increased significantly and has managed to jump much above the first warning line (WL1) of the major ascending pitchfork. Price is almost to reach the median line (ml) of the minor descending pitchfork. A valid breakout above the median line (ml) will signal a further increase on the short term. A further drop will be confirmed only by a drop below the WL1 followed by a retest of this line.
By Olimpiu Tuns - Market Analyst
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