USDCAD Slumps 40 Pips After Canadian CPI
USDCAD trades 0.34% lower at 1.3269 Canada Consumer Price Index (year over year) came in at 2% topping expectations of 1.7% in July, the monthly reading for Consumer Price Index (month over month) came in at 0.5% beating forecasts of 0.2% in July. Crude oil, Canada’s main export product is 1.02% higher at $56.74 per barrel. In US the MBA mortgage applications for w.e.16 August dipped at -0.9% from previous +21.7%.
The positive momentum halted after the sharp 50 pips drop which pierced the 200 hour moving average. The pair as of writing finds strong support at the ascending trendline around 1.3255. Sellers if they want to take control must break below the trendline for a move down to 1.3182 the 50 day moving average. Immediate resistance for the pair stands at 1.3324 today’s high, and then at 1.3382 the high from June 19th. A move above 1.33 might bring back the bulls.