Monday's short-covering equity reversal enabled key indicators of risk appetite such as the Canadian Dollar and Gold to rebound. Daily bullish MACD divergence helped Gold to test 6-week trendline resistance and daily bearish MACD divergence coerced the USD/CAD to probe a key fibonacci retracement at 1.1366. While moves in the Loonie (USD/CAD) and Gold are classified as corrective so far, a sustainable recovery could influence the EUR/USD & DXY (US Dollar Index) to breakout of rangebound trade. A loss of consolidation support at 79.815 would allow the Greenback to venture back towards the 2009 low at 78.334. If, however, the EUR/USD loses 50-day MA support, then there is a high probability of retesting 1.3730-1.3839, the lower end of the latest range.
