USD/CAD Remains Quiet Ahead of CPI Data
- USD/CAD Remains Quiet Ahead of CPI Data
- CAD CPI (YoY) (FEB) is Expected at 2.1%
- Looking for additional trade ideas for the Forex market? Read Our Market Forecast
The USD/CAD remains quiet this morning, trading in a range ahead of today’s CAD CPI data. Expectations for this morning’s even are set at 2.1% (YoY) (FEB). This event raises the possibility that volatility may increase for the pair, and traders should continue to monitor the USD/CAD for a possible breakout.
Technically, the USD/CAD has made little progress after last Wednesdays 187 pip decline. Now the pair is consolidating in a 187 pip range. This daily range is displayed below, and has been created by referencing Tuesday’s low at 1.3263 as a value of support and Wednesday’s high of 1.3409 as a point of resistance. If prices break higher today, it would suggest that the USD/CAD is prepared to next challenge the standing March high at 1.3535. Alternatively in the event of a bearish breakout beneath support, traders may start looking for prices to retrace further towards the February 2017 low of 1.2968.
USD/CAD Daily Chart with Range
Market sentiment for the USD/CAD currently stands short of extremes, with SSI totaling -1.42. With 59% of traders short the market, this typically suggests that prices may continue to trend higher. It should be noted that traders have remained net short the USD/CAD since February 28th. If prices continue to trade higher, it would be expected to see this value remain negative. In the event of a bearish breakout, positioning could begin to shift back towards more neutral values. In this scenario, traders may elect to monitor SSI for further confirmation of a potential shift in the standing USD/CAD trend.
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--- Written by Walker, Analyst for DailyFX.com
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.