empty
 
 
12.09.2018 04:21 PM
Fundamental Analysis of USD/CAD for September 12, 2018

USD/CAD has been quite impressive amid impulsive bearish pressure which led the price towards the support area between 1.2950-1.3050. USD has been struggling for gains in light of recent worse-than-expected economic reports despite the positive change in employment.

Today US PPI report was published with a decrease to -0.1% from the previous value of 0.0% which was expected to increase to 0.2% and Core PPI also decreased to -0.1% from the previous value of 0.1% which was expected to increase to 0.2%. Moreover, today Crude Oil Inventories report is going to be published which is expected to increase to -1.3M from the previous figure of -4.3M. Besides, FOMC Member Brainard is going to speak about the upcoming monetary policy and timing for monetary tightening.

On the other hand, CAD has been quite feeble amid employment reports which did not quite encourage CAD gains over USD in the process. Despite downbeat economic data even today, CAD managed to sustain the gains which indicates the strength of CAD over USD for a while. Today Canada's Capacity Utilization Rate report was published with an increase to 85.5% from the previous value of 83.7% but it failed to meet the expectation of 86.9%. Ahead of the NHPI report to be published tomorrow which is expected to be unchanged at 0.1%, CAD is quite stable at the current market situation.

Meanwhile, ahead of the US CPI and Retail Sales reports to be published this week, USD has been quite weak against CAD whereas further negative outcome of the upcoming reports may add to CAD gains in the future.

Now let us look at the technical view. The price is currently residing below 1.3050 area which has been one of the strongest event area observed so far. The area between 1.2950-1.3050 has been quite corrective and volatile, so a daily close below or above this area is indeed required to determine trend momentum in the pair for the coming days. As the price remains below 1.3350 area, the bearish bias in this pair is expected to continue further.

SUPPORT: 1.2750, 1.2950, 1.3050

RESISTANCE: 1.3050, 1. 3300-50

BIAS: BEARISH

MOMENTUM: VOLATILE

This image is no longer relevant

Earn on cryptocurrency rate changes with InstaForex
Download MetaTrader 4 and open your first trade
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST
  • Chancy Deposit
    Deposit your account with $3,000 and get $8000 more!
    In March we raffle $8000 within the Chancy Deposit campaign!
    Get a chance to win by depositing $3,000 to a trading account. Having fulfilled this condition, you become a campaign participant.
    JOIN CONTEST
  • Trade Wise, Win Device
    Top up your account with at least $500, sign up for the contest, and get a chance to win mobile devices.
    JOIN CONTEST
  • 100% Bonus
    Your unique opportunity to get a 100% bonus on your deposit
    GET BONUS
  • 55% Bonus
    Apply for a 55% bonus on your every deposit
    GET BONUS
  • 30% Bonus
    Receive a 30% bonus every time you top up your account
    GET BONUS

Recommended Stories

Can't speak right now?
Ask your question in the chat.
Widget callback