After an impulsive non-volatile bullish trade, USD/CAD has bounced off from 1.3790 resistance level recently. The pair is currently trading with higher volatility but bears seem to gain some strength in the coming days. Canada posted Building Permits report yesterday which was came out with a negative figure at -5.8% which was expected to be at 4.2%. This did affect the CAD gains recently. On the other hand, the US released Import Price report which was published with a positive figure of 0.5% which was expected to be at 0.2%. Besides, Crude Oil Inventories report is going to be published in a few hours which is expected to show a drawdown of -2.0M from -0.9M previously. Higher volatility is expected during the Crude Oil news today. If the US news comes positive, we might see CAD losing more grounds today.
Now let us look at the technical chart. The price has shown bullish rejection on yesterday's daily candle. Today, bears have already shown some pressure in this pair. If we see a daily close with a bearish candle, then we will be looking forward for the price to move down towards 1.3600 support level.
