USD/CAD has been in a bullish retracement phase recently which is most probably came to an end after breaking below the 1.2700 with a daily close due to bad USD economic reports published yesterday. CAD has been quite stronger after the rate hike decision and hawkish statements from the Bank of Canada officials. The break below 1.2700 did confirm that the bearish trend is still intact and further bearish pressure in this pair is on the way. Today CAD Manufacturing Sales report is going to be published which is expected to be negative at -1.0% which previously was at 1.1%. If the report comes better than expected then we might see more impulsive bearish pressure. On the USD side, today Unemployment Claims report is going to be published which is expected to decrease to 240k from the previous figure of 244k, Philly Fed Manufacturing Index is expected to decrease at 18.3 from the previous figure of 19.5, Capacity Utilization Rate is expected to increase to 76.7% from the previous value of 76.6% and Industrial Production report is expected to decrease to 0.3% from the previous value of 0.4%. Along with these economic reports, FOMC Member Kaplan is going to speak today about nation's key interest rates and future monetary policies which are expected to be neutral in sentiment. To sum up, USD is expected to weaken today as of the forecasted figures today are quite negative in nature and CAD sentiment is still quite strong and remain like this for the coming days.
Now let us look at the technical view, the price is currently showing some bullish move after impulsive bearish move yesterday. Currently, the price is expected to move towards 1.2700 and if we see any bullish rejection off the level the price is expected to reach 1.2450 support level in the coming days. As the price remains below 1.2800 with a daily close the bearish bias will continue further.
