USD/CAD Range Breakout!

USD/CAD extends its range movement ahead of the US inflation data. Surprisingly or not, the pair has rallied after the BOC and now is almost approaching critical resistance levels.

First of all, the ECB could bring some action on the USD soon. The monetary policy could be left unchanged in today’s meeting. USD/CAD could register sharp moves after the US CPI and Core CPI publication.

I believe that in line with expectations data or better could really help the USD to take full control. The US Unemployment Claims could drop further from 385K to 370K which will be good for the greenback.

USD/CAD H4 Technical Analysis!

USD/CAD is trading in the red at the 1.2106 level and it seems undecided. It is trapped within a range and within a minor triangle. An upside breakout from these patterns and a new higher high could signal an upside movement.

Also, jumping and stabilizing above the 23.6% retracement level could signal a potential bullish reversal in the short term.

Conclusion!

USD/CAD has indicated that the downside is limited and that it could turn to the upside. Still, the price needs a bullish spark from the US economy to be able to jump higher.

 

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