USD/CAD has been very bearish recently. The pair is currently residing above the dynamic support of the 20 EMA and 1.2410 level of support. USD has been weaker, due to a deterioration of the economic reports released recently, while the CAD has been neutral. Recently, the CAD Employment Change report was released showing a decrease of 10.0 K from the previous figure of 22.2 k, which was predicted to be 13.9 k and the Unemployment Rate was released unchanged at 6.2%, which is expected to increase by 6.3%. Today, the CAD NHPI report was published with a decline of 0.1% compared to the previous value of 0.4%, which was expected to be 0.3%. On the USD side, today, the PPI report was released with an increase in as expected at 0.4% of the previous value of 0.2%. Unemployment Claims showed a positive change with a decrease of 243k from the previous figure of 258k, which had to be at 251k. The Core PPI report showed an increase of 0.4% the previous value of 0.1%, which was expected to be 0.2%. The Crude Oil Inventories data have been published to -2.7 M in comparison with the previous figure of -6.0 M, which had to be at -1.9 Mr. with these economic reports, a Member of the FOMC Brainard and Powell, spoke today about the nation’s key interest rates and future monetary policy, which had neutral bias. To sum up, the USD has been rather positive, supported by the economic reports today, but still CAD is strong enough to be dominated. This indicates that the market is bearish on this pair, and up to USD comes with high-impact economic reports in the days ahead, CAD is expected to continue.
Now, let us look at the technical view. The price is currently quite undecided and residing above the dynamic level of the 20 EMA and the support level of 1.2410. In the next few days, if the price breaks below 1.2410 with a daily close, we’ll be looking forward to sell it with a lens towards the next level of support at 1.2080. As long as the price remains below the 1.2640-50 resistance area, the bearish bias is expected to continue.