This week has proved to be quite corrective for most of the USD based pairs, and in USDCAD there has been no such trendy move to follow. After the positive PPI outcome at 0.3% yesterday, today USD CPI report will be published which is expected to be at 0.0% which previously was at 0.6% and Core Retail Sales is forecasted to be at 0.1% which previously was at 0.8%. If both events come up with positive reports USD is expected to have greater gain over the CAD in the long run. On the other hand, CAD does not have any fundamental event today but USD Crude Oil Inventories which is expected to be at 3.3M can prove to be an idle push for the CAD today. The daily close today will determine the upcoming move in this pair.
Now let us look at the technical view, the price is currently stalling 1.3420-1.3500 area. As the price is in the middle of nowhere right now, so we will be expecting some bearish movement towards 1.3375 before acting on any price action in this pair. If the price moves down towards 1.3375 and then if we see any rejection from the support we will be expecting much higher move towards 1.36 resistance.
