Weak inflation numbers on Friday hurt CAD
The USDCAD is in a mark-up phase. This phase is typically defined by a bullish EMA formation. I.e. the green 5-day EMA > the orange 13-day EMA > the black 34-day EMA. Moreover, the RSI(9) is above 50 and indicative of a bullish momentum.
Therefore, potential price support to be found with a confluence of factors including the central pivot support (P), the 38.2% Fibonacci retracement support and price support (green rectangle). There is also a bullish divergence in the stochastic (green trendline).
The loonie took a beating on Friday after inflation numbers showed inherent weakness. Yields on the Canadian 10-yr have been declining for today.
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