USD/CAD had impulsive bullish move yesterday after the massive selling the day before. This market is very volatile, and currently the price is in indecisive situation. Today the Unites States revealed the CPI report which showed a negative figure of -0.3% versus the expected reading of 0.0%. Core CPI was also negative at -0.1% while it was expected to be at 0.2%. Core retail sales report was equally downbeat at 0.0% which was expected to be at 0.2%. Similarly, the retail sales report registered a decline of 0.2% which was expected to be at 0.1%. Amid negative streak of the US fundamental reports today, CAD gained some ground despite the Bank Holiday.
Now let us look at the technical picture. Amid the USD negative economic reports, the price is showing some downward pressure currently but the bearish bias is not quite confirmed yet. As of the volatility in this pair, we will be looking for selling opportunities after the price break the level of 1.3280 with an intraday close, targeting the recent support at 1.3210. If the price breaks above the 20 EMA, we will be looking forward to buy towards 1.3380.
