The USD/CAD pair is going through a good amount of volatility after breaking the channel support below 1.32. Today reports on CPI and Retail Sales in the US were issued whereas at the same time data on Manufacturing Sales in Canada was issued as well. Volatility was observed after CPI came up with 0.6% which was expected at 0.3% and the figure of Retails Sales was 0.4% which was expected at 0.1%. On the other hand, data on Manufacturing Sales in Canada was unchanged with previous 2.3% which was forecast to be lower at 1.4%. Overall, USD had a good amount of advantage over CAD, with a good surplus in the CPI and Retail sales which was greater than unchanged Manufacturing Sales report.
Now let us look at the technical view, the market is currently in a corrective structure without any definitive breakout on each side. If the market breaks below 1.30, it is expected that it will reach 1.2500-50 area. On the other hand, if the market breaks above 1.3220 we will expect a bullish move towards the channel resistance. Now, there is no specific directional bias present in the market to follow until the price breaks either the support or resistance.
