The USDCAD is also moving lower and following the USD bias. The price is trading at the lowest level since September 6 when the price bottomed at 1.3465. That level was just above the August 30 low price reached at 1.34643 (double bottom). The low price today has reached 1.3474 so far.
Buyers looking to stick a toe in the water might lean against that double bottom level with a stop on a break below. It worked on September 6th.
Recall from the last two trading days, the 200 day MA stalled the rally on Friday. Yesterday the 100 hour moving average and 200 hour moving average were near each other at 1.3580. The high price reached 1.3581 before reversing lower and running. Those were K technical clues for sellers.
Bank of Canada’s Macklem Institute give a speech later today at 1:10 PM ET.
The Canada CPI came in at -0.2% last week weaker than 0.0% expected. The year on year fell to 2.0% for the first time in over three years (the target rate). Earlier this month, the unemployment rate rose to 6.6% from 6.4% (above the 6.5% estimate). That was a highest level going back to 2017 if you x-out the Covid period from 2020 and 2021.
The Bank of Canada before that data cut rates by 25 basis points to 4.25% from 4.5%. Did they miss the opportunity to cut by 50 basis points at that meeting? Will Macklem speak more dovishly? That might be a tempting scenario for dip buyers?
Perhaps helping the CAD higher storyline today is that oil prices are higher but off their highest level at $72.40 (currently trading at $71.50). Then again, the US is a formidable oil producer as well.
Watch for support buyers near 1.3465 with stops on a break below.
This article was written by Greg Michalowski at www.forexlive.com. Source