The Oil gained the lost August month losses, ended with gains boosted the CAD. Traders eye Canada GDP number.
We expect the Q2 GDP likely to be on the negative side. The drop in the oil prices likely to effects the Canadian economy. Economists expect to grow by 0.3%.
The cross has been falling for five consecutive days. The 20Dsma finds at 1.4680, low made 1.4700 at yesterday’s session.
The cross has been forming lower lows and lower highs in the hourly chart. The cross made a double top at 1.4987. Until the pair close below the double top, sell on rally favors the trend. Ahead of the Canadian GDP data, the loonie is trading lower against euro at Asia’s session.
Intraday resistance seems at 1.4820, 1.4840 and 1.4870.
For today’s session the selling open below 1.4700, safe selling emerges below 1.4680 targets at 1.4600 and 1.4850. The support finds at 1.4550, below 1.4680 20Dsma.
The hourly oscillators indicating positive divergence, real bullish momentum backs only above 1.5000 rounded aim at 1.5100 and 1.5200.
Trade: Selling below 1.4770 initial targets at 1.4750, selling accelerates below 1.4740 towards 1.4700. The panic likely to be triggered below 1.4680.
Bulls last hope remains at 1.4680 on a daily closing basis.