The USDCAD pair traded above the 1.3300 level for the first time since June this year, as Crude Oil prices tumbled to levels not seen since December 2017.
November 23, OctaFX – The Canadian dollar strengthened against the US overnight. The decline of the pair was large because of the broad weakness of the USD.
Canadian CPI in focus
Traders are also focused on Canada’s inflation numbers, which will be released today. The expectation is that the median CPI will remain unchanged at 2%.
The core CPI is expected to rise by an annualized rate of 1.6%, which will be higher than September’s CPI of 1.5%. Retail sales are expected to rise by a monthly rate of 0.1%. This will be higher than the previous decline of minus 0.1%.
USDCAD technical outlook
The USDCAD pair has been moving higher over the past two months. It has moved from a low of 1.2782 to a high of 1.3320. On the four-hour chart, the pair has made an equidistance channel as shown below. It is now trading at the 1.3195 level, which is close to the lower support level.
The RSI has fallen from 76 to the current 43. The pair will likely continue moving down to the important support of 1.3160.
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