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USDCAD – US Dollar In A Larger Downtrend Vs Canadian Dollar

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Aayush Jindal

USDCAD – US Dollar In A Larger Downtrend Vs Canadian Dollar

Key Highlights

  • US dollar traded lower this week against the Canadian dollar, and look set for more declines in the near term.
  • There was a monster support trend line on the daily chart of the USDCAD pair, which was broken during the recent decline.
  • Today during the NY session, the Canadian Consumer Price Index (CPI) will be released by the Statistics Canada.
  • The forecast is slated for a decline of 0.1% in July 2016, compared with the last rise of 0.2%.

USDCAD Pair Technical Analysis

The US Dollar started a downtrend against the Canadian dollar after hitting the 1.3250 resistance. The USDCAD broke a major support and currently looks set for more losses moving ahead.USDCADAs mentioned, there was a monster support trend line on the daily chart of the USDCAD pair. It was recently cleared by the dollar bears to open the doors for more declines. The pair also settled below the 100-day simple moving average, which is a bearish sign.If the current trend remains intact, then the pair may head towards the 76.4% Fib retracement level of the last leg from the 1.2460 low to 1.3250 high. The daily RSI is also below the 50 level, which is a signal that the pair is in a downtrend.

Canadian CPI

Today, there are a couple of economic releases lined up in Canada. The Consumer Price Index (CPI), which is 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 slated for a decline of 0.1% in July 2016, compared with the last rise of 0.2%.

Canadian Retail Sales

Moreover, the Canadian Retail Sales, which is a monthly data that shows all goods sold by retailers based on a sampling of retail stores of different types and sizes will be also be reported.The forecast is slated for a rise of 0.5% in July 2016, compared with the previous month. If the results fail to meet the expectation, then there is a chance of a recovery in the US Dollar. On the other hand, a better than expected result may lift the Canadian dollar.
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