- The median line could attract the USD/CAD pair.
- The US economic data should be decisive today.
- Taking out the median line activates more declines.
The USD/CAD price is trading in the red at 1.3450 at the time of writing. The pair seems determined to hit new lows as the US dollar weakens.
The price jumped higher after the BOC as the Canadian central bank developed a dovish tone. On the other hand, the US manufacturing and services sectors confirmed expansion.
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The Canadian dollar retook the lead yesterday, even though the US reported mixed data while the ECB maintained its monetary policy.
The US Advance GDP, New Home Sales, and Core Durable Goods Orders came in better than expected. At the same time, unemployment claims, the Advance GDP Price Index, durable goods orders, goods trade balance, and preliminary wholesale inventories are disappointing.
Today, the US economic figures should move the markets again. The Core PCE Price Index may announce a 0.2% growth versus the 0.1% growth in the previous reporting period.
Pending Home Sales is expected to report a 2.1% growth, exceeding the 0.0% growth during the last reporting period.
Furthermore, the Personal Spending and Personal Income data will also be released. Positive economic data should help the USD to dominate the currency market. On the contrary, the Greenback could lose significant ground versus its rivals.
USD/CAD Price Technical Analysis: Selling Bias
From the technical point of view, the USD/CAD pair escaped from a significant up-channel pattern, indicating a potential corrective phase. The price tried to come back above the broken uptrend line but failed to stabilize beyond this dynamic obstacle, confirming exhausted buyers.
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The upper median line (uml) retest confirmed I’ve drawn a descending pitchfork. So, the price could be attracted by the median line (ml), which acts like a magnet. Taking out this dynamic support opens the door for a more significant downside movement. Still, after the current sell-off, we cannot exclude a temporary rebound as the rate challenges a demand zone.
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