USDCAD Sellers Await Canadian CPI Report Under Pressure
Aayush Jindal
Key Highlights
US Dollar is under pressure against currencies such as the Euro and the British Pound, but remained stable against the Canadian Dollar.
Canadian Consumer Price Index (CPI) will be released by the Statistics Canada today, which is expected to increase by 0.5% in May 2015.
Canadian Retail Sales report will also be published, and the forecast is of a 0.7% increase in sales.
USDCAD is trading around a critical level, and any major deviation in today’s releases in Canada might cause swing moves.
USDCAD – Technical AnalysisThe USDCAD pair declined heavily recently towards 1.2120 before finding buyers around the mentioned support area. There was a solid buying interest noted, which pushed the pair back up in no time. Earlier, there was a channel which was breached by sellers, and now it is acting as a resistance for more upsides. Moreover, the 50% Fib retracement level of the last drop from the 1.2351 high to 1.21247 low is also around the same area. In short, there is a major resistance building around 1.2240-50.The hourly RSI has moved above the 50 level, suggesting that the pair might climb higher in the near term. There are chances of it forming an inverse head and shoulders pattern as well, which might be a brutal call for sellers.However, there is also a major barrier around the 100 hourly simple moving average, as one more bearish trend line along with the 200 MA is waiting around the same area at 1.2300. Let us see how sellers react if the pair reaches around the mentioned area.Canadian CPI and Retail SalesToday in Canada, the Consumer Price Index, i.e. a measure of price movements by the comparison between the retail prices of a representative shopping basket of goods and services will be released by the Statistics Canada. The forecast is lined up for an increase of 0.5% in May 2015, compared to the preceding month.US EIA Natural Gas Storage DataRecently, the US EIA Natural Gas Storage report was released, which provides an estimate derived from a computation process that uses both EIA (Energy Information Administration) monthly survey data and AGA (The American Gas Association). The market was expecting a reading of 93B, but the outcome was a bit lower as it came in at 89B, which increased the bearish pressure on the USD.
The hourly RSI has moved above the 50 level, suggesting that the pair might climb higher in the near term. There are chances of it forming an inverse head and shoulders pattern as well, which might be a brutal call for sellers.However, there is also a major barrier around the 100 hourly simple moving average, as one more bearish trend line along with the 200 MA is waiting around the same area at 1.2300. Let us see how sellers react if the pair reaches around the mentioned area.Canadian CPI and Retail SalesToday in Canada, the Consumer Price Index, i.e. a measure of price movements by the comparison between the retail prices of a representative shopping basket of goods and services will be released by the Statistics Canada. The forecast is lined up for an increase of 0.5% in May 2015, compared to the preceding month.US EIA Natural Gas Storage DataRecently, the US EIA Natural Gas Storage report was released, which provides an estimate derived from a computation process that uses both EIA (Energy Information Administration) monthly survey data and AGA (The American Gas Association). The market was expecting a reading of 93B, but the outcome was a bit lower as it came in at 89B, which increased the bearish pressure on the USD.
The hourly RSI has moved above the 50 level, suggesting that the pair might climb higher in the near term. There are chances of it forming an inverse head and shoulders pattern as well, which might be a brutal call for sellers.However, there is also a major barrier around the 100 hourly simple moving average, as one more bearish trend line along with the 200 MA is waiting around the same area at 1.2300. Let us see how sellers react if the pair reaches around the mentioned area.Canadian CPI and Retail SalesToday in Canada, the Consumer Price Index, i.e. a measure of price movements by the comparison between the retail prices of a representative shopping basket of goods and services will be released by the Statistics Canada. The forecast is lined up for an increase of 0.5% in May 2015, compared to the preceding month.US EIA Natural Gas Storage DataRecently, the US EIA Natural Gas Storage report was released, which provides an estimate derived from a computation process that uses both EIA (Energy Information Administration) monthly survey data and AGA (The American Gas Association). The market was expecting a reading of 93B, but the outcome was a bit lower as it came in at 89B, which increased the bearish pressure on the USD.