USD/CAD plunged and now is traded back below 1.24 psychological level. It's located at 1.2383 and is pressuring the first warning line (WL1) of the major descending pitchfork. The pair drops ahead of the US ADP Non-Farm Employment Change.
The economic indicator is expected around 555K below 978K in the previous reporting period. The Canadian GDP will be released as well and is expected to register a 0.8% drop.
The fundamentals will move the price later today. Better than expected US data and poor Canadian figures could boost the pair. On the other hand, poor US data and a good Canadian GDP could attract more sellers.
USD/CAD False Breakout?
USD/CAD has increased and it has managed to jump above the first warning line (WL1) of the descending pitchfork. Unfortunately, it has failed to stabilize above 61.8% retracement level.
Stabilizing above the warning line (WL1) could indicate a potential further growth. In the short term, we cannot exclude a temporary decline towards the weekly pivot point (1.2345). Maybe the bulls need to regroup before pushing the price higher.
Trading Conclusion!
Jumping and stabilizing above 1.2423 today's high could bring a new long opportunity and could validate a larger growth towards 1.25 and 1.26 levels.
