USDCAD at Daily Low after US November CPI

USDCAD trades 0.09 lower at 1.3218 making daily low after the U.S. November CPI came in at 2.1% above forecasts of 2%, the Consumer Price Index (Month over Month) came in at 0.3%, topping expectations of 0.2%. The Consumer Price Index ex Food & Energy (Month over Month) came in at 0.2% in line with forecasts. In Canada, the Capacity Utilization came in at 81.7%, below forecasts of 82.1% in the third quarter.

Traders await the Fed decision and statement later today for clues about the Feds next policy moves in 2020. The Bank Of Canada in its latest policy meeting kept it’s benchmark interest rates steady as widely expected by analysts. The Bank Rate now stands at 2% and the deposit rate is 1.5%.

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USDCAD Tests the 50-Day Moving Average

USDCAD as of writing has breached the 100-day moving average and find the support at the 50-day moving average at 1.3214.  USDCAD has canceled the recent positive momentum and now the outlook is neutral while a break below the 50-day moving average will turn the momenum to negative for the short term.

First support is at 1.3215 the daily low for the pair. Next level for sellers to watch is the 1.3170 low from December 6th, while a break below will attract more sellers and might push the price down to 1.3137 the low from November 6th.

On the other hand immediate resistance for USDCAD stands at 1.3239 the daily high while the next resistance stands at 1.3264 the high from December 9th. If we have a break above the next target to the upside is the 1.3276 the 200-day moving average.More content