Yesterday, data from Statistics Canada was published, which testified to the stability of inflation in the country: the rise in prices for the month amounted to +0.6% (+0.3% was expected).
This increased the likelihood that the Bank of Canada will raise the rate yet again. Now it is at a maximum for 22 years and is 5.0%.
As a result, USD/CAD is declining today after a volatile Tuesday.
→ the price may be supported by the median line and the lower limit of the current ascending channel;
→ the price may be supported by the level of 1.34, which previously served as resistance;
→ support may continue to be provided by the level of 1.344.
→ the price made a false breakout of the top on August 8;
→ resistance is provided by the psychological level at 1.35;
→ divergence on the RSI indicator;
→ the price is in the zone of a sharp fall in the rate recorded on June 1 — sellers can maintain control.
Since August 1, the USD/CAD rate has risen by more than 2.3%. In such conditions, a correction may be a fairly natural scenario.
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.