Can USD/CAD Break the 1.3028 Trendline Support?

FXOpen

The US Dollar (USD) inched lower against the Canadian Dollar (CAD) on Friday, decreasing the price of USDCAD to less than 1.3100 ahead of the Canada’s Consumer Price Index (CPI) news. The technical bias remains bearish because of a lower low in the recent downside move.

Technical Analysis

As of this writing, the pair is being traded near 1.3099. A support may be noted around 1.3028, the confluence of a couple of trendline support zones as demonstrated in the given below daily chart. A break below the 1.3028 support shall incite renewed selling pressure, validating a move towards the 1.2950 support.

Can USD/CAD Break the 1.3028 Trendline Support?

On the upside, the pair is likely to face a hurdle around 1.3169, the intraday high of yesterday ahead of 1.3180, the trendline resistance area and then 1.3283, the 50% fib level. The technical bias shall remain bearish as long as the 1.3209 resistance area is intact.

Canada’s CPI Release

Statistics Canada is due to release the Canada’s Consumer Price Index (CPI) data today. According to the average forecast of different economists, the CPI – a main gauge for inflation- remained 1.6% in January as compared to 1.5% in the same month of the year before. Generally speaking, a higher CPI reading is considered bullish for the Canadian Dollar and vice versa.

Trade Idea

Considering the overall technical and fundamental outlook, selling the pair around current levels could be a good strategy if the data comes better than forecast.

Trade over 50 forex markets 24 hours a day with FXOpen. Take advantage of low commissions, deep liquidity, and spreads from 0.0 pips. Open your FXOpen account now or learn more about trading forex with FXOpen.

This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

Latest from Forex Analysis

Commodity Currencies at Strategic Levels. What Can Affect a Breakdown Downwards? Market Analysis: AUD/USD and NZD/USD Turn Red The Dollar is Corrected after the Comments of the Head of the Federal Reserve USD/JPY Analysis: Prospect of a Breakout of the Level of 155 Yen per Dollar Market Analysis: EUR/USD Nosedives While USD/JPY Extend Rally

Latest articles

Weekly Market Wrap With Gary Thomson: UK100, USD, GOLD, OIL
Financial Market News

Weekly Market Wrap With Gary Thomson: UK100, USD, GOLD, OIL

Get the latest scoop on the week's hottest headlines, all in one convenient video. Join Gary Thomson, the COO of  FXOpen UK, as he breaks down the most significant news reports and shares his expert insights.

  • UK100 Share Index Rises
Trader’s Tools

What Is a Darvas Box Theory and How Does It Work in Trading?

The Darvas Box Theory, pioneered by Nicolas Darvas in the 1950s, has transcended its stock market origins to become a valuable tool for forex traders. This method leverages specific price movements and patterns, known as the Darvas Box, to track

Shares

NFLX Stock Price Falls Despite Subscriber Growth

Yesterday, after the close of the main trading session on the stock market, Netflix reported to investors for the 1st quarter of 2024.

The report turned out better than expected:
→ earnings per share: actual = USD 5.28, forecast = USD 4.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 60% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.