The USD/CAD pair is trading at 1.2502 level versus 1.2563 yesterday's high. The price action failed to confirm a larger rebound, so the bias remains bearish. The rate could drop deeper anytime.
Fundamentally, the Canadian Consumer Price Index will be released later today and it is expected to report a 0.1% drop in December versus 0.2% growth in the previous reporting period. In addition, the Core CPI, Trimmed CPI, Median CPI, Common CPI, and the Wholesale Sales indicators will be released as well.
On the other hand, the Building Permits could remain steady at 1.71M, while the Housing Starts could drop from 1.68M to 1.65M.
USD/CAD Upside Invalidated!
Technically, the USD/CAD pair retested the 61.8% (1.2547) level, but it has failed to stay above it or above the descending pitchfork's median line (ML) signaling strong sellers. As long as it stays under the median line, the price could resume its downside movement.
Still, only a new lower low, a bearish closure below the 1.2453 could open the door for a larger drop towards the 1.2400 psychological level.
USD/CAD Outlook!
The price remains bearish after failing to stabilize above the 61.8% retracement level. A new lower low or a new false breakout above the median line (ML) could represent a selling opportunity and could announce more declines.
