At present our pair is trading within the daily Fibo levels and pushing away from the level of 1.2220 (Fibo level 0.00). It has approached and is currently testing the level of 23.6.
So far the pair has not been able to break through the resistance level of the candle body and we are seeing a correction that can last up to 1.2355.
Furthermore, the MACD histogram shows a weakening, and the Stochastic indicator is showing a possible spread. It is still in the overbought zone, but about to enter a really strong correction or spread. Therefore, it's too early to say what position we should take, until we receive a more conclusive result.
Of the fundamental factors today we have data on the US GDP for the second quarter. The pair might not reach our resistance levels, with indicators exceeding the projected 3% and rushing up.
In addition, the Canadian government is concerned about strengthening its own currency and is ready to reduce the level of inflation.
Overall, we are looking for points to enter long positions at the current support levels and expect an upward movement of the pair.
