USD/CAD has been loosing about 0.5% since yesterday to test a key support level around 1.2945. In addition to getting the 2-month low for the pair, this level borders the 38.2% Fibonacci retracement of the last uptrend.
The pair keeps staying in the downtrend channel and has just broken below the trend line and if the bears get luck to broke 38,2% Fibo level, we will be convinced that the bears have the better hand.
Also, the RSI indicator is in a red zone and Cayman shows 50% of buyers. For this pair, we will pay attention to the personal income, jobless claims and other data on Thursday. For example, as you know, yesterday there was an agreement on trade issues between NAFTA members.
And if the bulls will be able to rebound from current level due to this data, we will be going to buy USDCAD from 1, 30 to get 200 points as a minimum.
Yesterday the DAX index started its trading session with 1,2% gap. It was the fifth session for the last week when the index had opened in the green zone. Mostly it was caused by NAFTA agreement and Deutsche blue chips – BMW, Volkswagen Group, Siemens.
We can see, that price has broken up the consolidation zone going through the 200 MA and 12500 resistance level. Now, RSI is in the overbought zone. Buyers need to break 12650 to have the next rising momentum
So our targets for:
USDCAD – is buying to 1,32
DAX30 (GER30) – is buying to 12900