The Canadian Dollar was the big winner during yesterday’s session with USD/CAD selling off 2 big figures. There was no major Canadian news, but commodity prices maintained their support and US inflation indicators were ahead of expectations although still in a deflationary state as compared to last year, when the highs were seen on commodity prices (Oil = $145+.) On the retracement below from the March highs @ ~1.30 to the June lows (1.0785) we see the pair really starting breaking down around the 4-100 hr moving average and then again through the 1.1450 - 1.1410 area where some support was noted. The pair continued lower and broke the 4-200 hr mavg and found some support @ the 23.6% level of the aforementioned move. Although the signs are now negative for the pair, a slight correction to perhaps the last region where the pair broke down could be in order.
The USD/CAD is currently testing session lows, hitting 1.1351. The next level of support below this is near the 1.1250 level. On the top side, the 100MA comes in at 1.1404 (blue) and 200MA at 1.1452 (green)
The EUR/USD is currently testing the lower trendline of the current consolidation. A low was made for the session at 1.3912. A clear break below this level could send the pair to test near term support at the 1.3832 level. Longer term support comes in at the 38.2% Fibo level at 1.3619. The pair has been moving progressively lower since the 9th of July and has been in a tightening formation for the past few days.
