USD/CAD has been in an impulsive non-volatile bearish trend since the rate hike decision of CAD held recently. CAD has been quite dominating over USD recently without any sort of weakness along the momentum. On Monday, CAD wholesale Sales report was published where it showed an increase to 0.9% from previous value of 0.8% which was expected to decrease to 0.5%. Friday CAD has GDP report to be published which is expected to be unchanged at 0.2% but looking at the recent positive economic reports and hawkish sentiment of CAD the GDP report seems to show some positive outcome. On the USD side, today FOMC Meeting will be held discussing the upcoming interest rate hikes, future monetary policies and the inflation rate which is expected to be quite hawkish and a hint of further rate hikes in the coming months is expected. Before the FOMC Meeting Minutes, today USD New Home Sales report is going to be published which is expected to show an increase to 615k from the previous value of 610k and Crude Oil Inventories report is expected to show a less deficit at -3.3m which previously was at -4.7m. As of the upcoming events of the currencies in the pair, a good amount of volatility is expected to hit the market today and there are higher chances of some gains on the USD side after the FOMC meeting today which might provide USD to have some short-term gains against CAD this week.
Now let us look at the technical view, the price has shown indecision yesterday and showing some bullish pressure ahead of the FOMC Meeting minutes today. Currently, the price is expected to show some retracement towards 1.2640-50 resistance level before progressing further with the downtrend with a target towards 1.2450 support level. As the price remains below 1.2650 with a daily close the bearish bias is expected to continue further with such momentum in the market.
