Canadian CPI Weakens

On Wednesday, USDCAD gets fresh interest and is supported by a number of reasons. More malleable Canadian the Consumer Price Index weakens the Canadian dollar. Thus works as a push in the face of moderate Greenback gain. The ambiguous technical situation calls for prudence prior to committing to a clear short-term trend.

The Loonie is coming under pressure as a result of lower local consumer price inflation numbers announced on the previous day. That appear to have shattered prospects for additional rate rises by the Canadian Central Bank). In contrast, the US the US dollar looks like gaining on yesterday’s hardline FOMC minutes.

Thus far, spot rates have remained steadfast beneath the 38.1 percent Fibonacci retrace point of the Sept to Nov spike. They have encountered some resistance at a two-month-old bullish trend line. The most recent value is within the 50-day simple moving average (D-SMA), about 1.3670 to1.3665 level.

USDCAD Technical Analysis

Having oscillations on a daily basis gaining a little adverse impetus. A compelling breach under the 50-day Simple Moving Average (SMA) can be considered as a new signal for negative investors. Paving the door for an important fall. The USDCAD currency pair may possibly go further under the 50 percent Fibonacci threshold. Which is near the 1.3640 to1.3635 area. Perhaps intensify its fall to the 1.3600 region on its way downward towards the 1.3580 to1.3575 region. Representing 61.8 percent Fibonacci. mark.

USDCAD Daily Graph

Any further upward movement, on the contrary, is projected to find some difficulties at the week swinging top. Near the 1.3750 level, Then for the 1.3775 level, or the 23.6 percent Fibonacci point. This brief bearish tilt will be compensated for by some implementation buying, helping the USDCAD pair to reclaim the 1.3800 mark. The rising trend might continue into the supporting zone of 1.3835 to1.3840. With the year-to-date high, which is at 1.3900.

Support and Resistance

R3 = 1.3777 R2 = 1.3754 R1 = 1.3726    PIVOT = 1.3704     S1 = 1.3676 S2 = 1.3653 S3 = 1.3626