The fall in commodity prices badly hurts the Australian economy. After the commodities super cycle, iron prices have been falling very badly. The recent gold prices added some more pressure to the AUD.
Goldman Sachs expects iron ore prices to continue to fall until the second quarter of 2016.
The nuclear deal makes oil prices move lower. Lower oil prices directly effects the Canadian economy.
At yesterday's session, data on the Canadian whole sales came out on the down side. Wholesale sales decreased by 1.0% to $54.5 billion in May, following two consecutive periods of increases.
Technical view: The cross has been trading on a bearish bias. The cross re-test 0.9400 three times in 15 months, but successfully managed to close above that. The 20Dsma is found at 0.9515, 50Dsma is found at 0.9515 and 20Wsma is seen at 0.9570. Traders can keep an eye on this cross, big moves are likely to take place in coming days. A weekly close below 0.9400 opens gayes to a big fall. In the weekly charts, we can observe a big head and shoulder pattern. The cross has been testing the neck line.
In the daily chart, the cross formed a double top at 0.9587 and 0.9617 again. The intraweek pattern shifts to mild-buying with sl 0.9500. We recommend fresh selling below 0.9500 towards 0.9420 and 0.9400.
Intraday support is found at 0.9550, 0.9520 and 0.9510. Resistance is seen at 0.9575, 0.9587, and 0.9617. Small buying is available above 0.9600 with targets at 0.9615, 0.9630, and 0.9660.
The material has been provided by InstaForex Company – www.instaforex.com