In the United States, the Consumer Price Index (YoY) grew +1.6% in the month of January, in like with consensus expectations. Moreover, the Consumer Price Index (MoM) was unchanged in January, missing estimates calling for +0.1%. The Consumer Price Index ex Food and Energy (MoM and YoY) was reported at +0.3% in January (vs. 0.2% expected) and +1.9% in January (against projections of +1.8%) respectively. Finally, Initial Jobless Claims (February 17) yielded a figure of 362K, against 355K expected.
According to the Technical Analyst Team at ICN.com, “The USD/CAD is facing difficulty in breaching its key resistance of the ascending channel, which is normal especially with overbought signals on momentum indicators. The harmonic formation remains valid as stability above 1.0055 levels forces us to hold on to our positive expectations.
ICN.com analysts posit the next resistances at 1.0205, then 1.0240 and finally 1.0290. Should the pair reverse its gains and turn negative, a break below the 1.0160 support will usher in the additional means of corrective action at 1.0120 and 1.0100.