USDCAD is poised to hit new highs as traders react to lower Canadian CPI data.
While the US dollar is lower against most other currency pairs, the greenback is higher against the Canadian loonie as traders react to lower CPI.
This movement of the dollar against the Canadian loonie is in contrast to the general declining trend of the US dollar today.
Canada's month-on-month CPI was 0.0% vs. 0.4% expected. The year-over-year rate fell to 2.9 percent from 3.4 percent last month (and below the 3.3 percent expected).
Technically, the price has returned to the fluctuation zone between 1.3526 and 1.3533. The 50% Fibonacci midpoint of the bearish move from the October high reaches 1.35378.
So far, sellers have relied on the swing zone, with bearish support at 1.3493 followed by the 100-bar EMA on the four-hour chart at 1.3470.
On the upside, a break of 1.354281 has traders targeting the 100-day moving averages of 1.3555 and 1.360.
While the US dollar is lower against most other currency pairs, the greenback is higher against the Canadian loonie as traders react to lower CPI.
This movement of the dollar against the Canadian loonie is in contrast to the general declining trend of the US dollar today.
Canada's month-on-month CPI was 0.0% vs. 0.4% expected. The year-over-year rate fell to 2.9 percent from 3.4 percent last month (and below the 3.3 percent expected).
Technically, the price has returned to the fluctuation zone between 1.3526 and 1.3533. The 50% Fibonacci midpoint of the bearish move from the October high reaches 1.35378.
So far, sellers have relied on the swing zone, with bearish support at 1.3493 followed by the 100-bar EMA on the four-hour chart at 1.3470.
On the upside, a break of 1.354281 has traders targeting the 100-day moving averages of 1.3555 and 1.360.