- – The US Dollar is currently in a recovery mode versus the Canadian dollar, and trading above 1.3100.
- – There is a monster triangle pattern formed on the weekly chart of USD/CAD, which may provide us the next move either above 1.33 or below 1.30.
- – Today, the Canadian Consumer Price Index (CPI) will be released by the Statistics Canada, which may spark the next move in CAD.
Canadian Consumer Price Index (CPI)
The Canadian dollar is waiting for a major break versus the US Dollar, which may be ignited with today’s Consumer Price Index (CPI) report, published by the Statistics Canada.
The market is prepared for a rise of 1.5% in the price movements by the comparison between the retail prices in Sep 2016, compared with Sep 2015. In terms of the monthly change, the CPI is forecasted to increase by 0.2%, compared with the last decline of 0.2%. Moreover, the Canadian Retail Sales report will also be published today, and the market is aligned for an improvement in the retail sector.
It would be interesting to see how the outcome shapes up. If at all, there is a disappointing result, the CAD may face sellers, and it would give an opportunity to the USD/CAD buyers to take it above the 1.3300 handle.
USD/CAD Technical Analysis
However, any major recovery in the pair won’t be easy. There is a monster resistance formed on the upside, as there is a critical triangle pattern formed on the weekly chart. The pair failed on many occasions to clear the triangle resistance, and may continue to face offers.
However, there are high chances of the pair breaking higher, and moving towards the 1.3500 level in the medium term. It would need the US dollar strength, and a few bad reports in Canada. As stated, today we have the Canadian CPI, and it could well be the first one to start a break move in the USD/CAD pair.
Tags: Canada CPI, Canada Retail Sales, Canadian Dollar, US Dollar, USD/CAD Technical Analysis