Extremely Oversold USD/CAD
The USD/CAD traded on positive note in the Wednesday's morning amid upbeat ADP numbers; following a 45-pip upside movement, the USD/CAD left behind nearly 6 month lows at 1.0625 to trade at 1.0670.
The path of the US Dollar against its Canadian counterpart has turned inconclusive amid conflicting technical cues. On one hand, a break below support at a rising trend line set from September 2012 argues in favor of the downside scenario. On the other, the formation of a bullish Piercing Line candlestick pattern hints a bounce may be ahead. A daily close back above the trend line (1.0680) exposes the 50% Fibonacci expansion at 1.0727. Alternatively, a turn below the 76.4% level at 1.0605 aims for a horizontal pivot set from the July 5 close at 1.0570.
Mixed technical cues and looming heavy-duty event risk by way of the US Employment report warn against taking a trade on the long or short side at current levels.
The USD/CAD traded on positive note in the Wednesday's morning amid upbeat ADP numbers; following a 45-pip upside movement, the USD/CAD left behind nearly 6 month lows at 1.0625 to trade at 1.0670.
The path of the US Dollar against its Canadian counterpart has turned inconclusive amid conflicting technical cues. On one hand, a break below support at a rising trend line set from September 2012 argues in favor of the downside scenario. On the other, the formation of a bullish Piercing Line candlestick pattern hints a bounce may be ahead. A daily close back above the trend line (1.0680) exposes the 50% Fibonacci expansion at 1.0727. Alternatively, a turn below the 76.4% level at 1.0605 aims for a horizontal pivot set from the July 5 close at 1.0570.
Mixed technical cues and looming heavy-duty event risk by way of the US Employment report warn against taking a trade on the long or short side at current levels.