USD/CAD is currently at the edge of breaking above or below the event level of 1.3265. Despite the oil prices trading in a lower range recently, CAD is quite stronger against USD now. The bearish trend in this pair is expected to continue further due to the determination of the BOC looking forward to economic turnaround. Recently CAD had positive Wholesale Sales report which turned out to be better than expected at 1.0% which was expected to be at 0.5%. and USD also had positive Current Account report showing less deficit at -117B which was expected to be at -124B. The current account report of the US did help the currency to gain some strength over CAD but it is still struggling to break above 1.3265 resistance level. Today USD Existing Home Sales report is going to be published which is expected to decrease to 5.54M from 5.57M previously and Crude Oil Inventories report is expected to show less deficit at -1.2M which previously was at -1.7M. If USD reports come out negative today then we might see further bearish move in this pair in the coming days with more impulsive bearish pressure.
Now let us look at the technical view, the price is currently struggling to break over 1.3265 which signals the presence of bears at the level which is trying to hold the price down. If the price remains below the level with a daily close then we will be looking forward to selling with a target towards 1.3000 and on the other hand if the price breaks above the 1.3265 with a daily close then we will be looking forward to buying with a target towards 1.3390-1.3400 resistance area.
*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.
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