The USDCAD appears to be headed for its 2019 low of 1.2950
On Friday, Markit's U.S. Manufacturing Purchasing Mangers' Index for the August preliminary reading is expected to rise to 52.0 on month, from 50.9 in the July final reading. Markit's U.S. Services Purchasing Mangers' Index for the August preliminary reading is expected to increase to 51.0 on month, from 50.0 in the July final reading. Finally, Existing Home Sales for July are expected to spike to 5.40M on month, from 4.72M in June.
The Euro was bearish against most of its major pairs with the exception of the NZD and USD. In Europe, the German Federal Statistical Office has posted July PPI at -1.7% (vs -1.8% on year expected).
The Australian dollar was bearish against most of its major pairs with the exception of the NZD and USD.
The USD/CAD
fell by 27 pips during Thursday's trading session. The currency pair has been falling inside of an descending wedge pattern that closely resembles a bearish channel since mid to late-March, after the U.S. Federal Reserve announced its unlimited quantitative easing initiative. The pair is currently holding just below the upper trend line of the pattern. The RSI is bearish and currently sitting at 35. The pair is likely to continue grinding lower toward the 1.3035 support level. If price breaks below 1.3035, it will likely carry on lower to retest the 2019 low of 1.2950. If price turns up, traders can look to the upper trendline as strong resistance. If price breaks above the upper trendline, then the pair will probably find resistance at 1.3355 before turning back down. If price breaks above 1.3355 it could mean the start of a new uptrend. However, the massive quantitative easing program used by the Fed will likely keep the U.S. Dollar Currency Index depressed as a result of inflation.
Source: GAIN Capital, TradingView