USD/CAD accumulates more bullish energy [Video]
|The USD/CAD pair was traded at 1.2957 at the time of writing. In the short term, it seems undecided as the Dollar Index moves somehow sideways as well. Fundamentally, Canada reported higher inflation in May. The CPI rose by 1.4% versus 1.0% expected and versus 0.6% growth in the previous reporting period, while the Core CPI surged by 0.8% compared to 0.7% growth in April. Later, the Flash Services PMI is expected at 53.9 points, the Flash Manufacturing PMI could drop from 57.0 to 56.0 points. Unfortunately for the USD, the Unemployment Claims came in at 229K in the last week above 227K expected.
From the technical point of view, the USD/CAD pair is trapped between 1.2996 and 1.2905 levels. Escaping from this range could bring new trading opportunities. In the short term, the price was in a corrective phase after its swing higher. As you can see on the H1 chart, the rate failed to stay below the 23.6% (1.2945) signaling that the retreat ended. Still, only a valid breakout above the pitchfork’s upper median line and above 1.2996, a new higher high activates an upside continuation. A new lower low may signal a larger correction.
Join Learn 2 Trade VIP Group now!
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.