- Summary:
- USDCAD adds 0.18% at 1.3290 but off the daily highs after the Canada Consumer Price Index (month over month) came in at 0.3% in line with expectations
USDCAD adds 0.18% at 1.3290 but off the daily highs after the Canada Consumer Price Index (month over month) came in at 0.3% in line with expectations for October, the yearly reading also came as expected by analysts at 1.9%. The monthly core CPI came in at 0.4% topping expectations of 0.3% in October.
Meanwhile, crude oil prices reversed earlier losses and as of writing trades 0.72% at $55.74 per barrel helping loonie to recover against USD.
Bank of Canada pointed out that the risks are to the downside with escalating China-US trade tensions, weak business investment and falling crude oil prices. BoC will possibly wait until the Q1 next year before easing.
USDCAD Technical Analysis Levels to Watch
USDCAD managed today to break above the 200-day moving average but retreated after the release of the CPI data. The important level for today is the 200-day moving average, if the pair settles above that level then bulls will be in the driver’s seat for the upcoming sessions, while a close below will cancel the recent positive momentum that started late October.
USDCAD will meet resistance at 1.3314 today’s high, a break above that level will target the next resistance at 1.3345 the high from October 10th. On the downside, first support for USDCAD stands at 1.3261 the daily low while a break below might accelerate the fall further towards 1.3212 the 50-day moving average.