USD Hit By Poor Data: September 01, 2017

USD/CAD Seems Unstoppable

USD/CAD plunged below several support levels on the release of United States data. The figures have come in worse than expected and have invalidated a potential upside movement. The greenback is demolished once again by the United States economy. Unfortunately, the poor numbers will most likely force the Federal Reserve to keep the Federal Funds Rate on hold till next year.

USD sellers have taken the lead again and seem motivated to drag the currency to new lows in the upcoming period. Right now I don’t see how the USD could turn to the upside, maybe only a severe oversold will bring the bulls in the market again.

The US Unemployment Rate increased unexpectedly, from 4.3% to 4.4% in August, as traders expected 4.3% growth, while the NFP registered the lowest level in the last three months, printing 156K, below the 180K estimate versus 209K in the former period. Moreover, Average Hourly Earnings rose by 0.1%, versus the 0.2% estimate.

USD/CAD

You can see that the rate has dropped below the 1.2460 static support, lower median line (LML) of the black ascending pitchfork, median line (ml) of the minor descending pitchfork, the warning line (wl5) and the lower median line (lml) of the black descending pitchfork.

It almost reached the lower median line (LML) of the major descending pitchfork but could still react to this level if US data continues to disappoint. A failure to reach the LML will signal a major oversold and a potential rebound.

EUR/GBP Additional Drops Expected

EUR/GBP

Price is trading in the red and seems poised to extend the sell-off. A breakdown seems imminent after the retest of the upper median line (UML) and the 0.9226 horizontal resistance. A major drop will happen if the rate closes under the median line (ml) and comes to retest it.

AUD/USD Erased The Morning Losses

AUD/USD

AUD/USD rallied on US data, reaching new highs. The pair found temporary resistance right above the 0.7989 level. It could climb higher and approach the 0.8065 swing high in the upcoming period, but only if it stays within the minor ascending pitchfork’s body.

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