USD/CAD has been quite bearish recently. The pair is currently residing above the dynamic support of 20 EMA and 1.2410 support level. USD has been weaker due to worse economic reports published recently, whereas CAD has been neutral. Recently, the CAD Employment Change report was published showing a decrease to 10.0K from the previous figure of 22.2k which was expected to be at 13.9k and Unemployment Rate was published unchanged at 6.2%, which was expected to increase to 6.3%. Today, the CAD NHPI report was published with a decrease to 0.1% from the previous value of 0.4%, which was expected to be at 0.3%. On the USD side, today's PPI report was published with an increase as expected at 0.4% from the previous value of 0.2%. Unemployment Claims showed a positive change with a decrease to 243k from the previous figure of 258k, which was expected to be at 251k. The Core PPI report showed an increase to 0.4% from the previous value of 0.1%, which was expected to be at 0.2%. The Crude Oil Inventories data were published at -2.7M in comparison with the previous figure of -6.0M, which was expected to be at -1.9M. Along with these economic reports, FOMC Member Brainard and Powell spoke today about the nation's key interest rates and future monetary policies, which had neutral bias. To sum up, USD has been quite positive backed by economic reports today, but still CAD is quite strong to be dominated. This indicates that the market is bearish for this pair and until USD comes with high-impact economic reports in the coming days, CAD is expected to gain further.
Now let us look at the technical view. The price is currently quite indecisive and residing above the dynamic level of 20 EMA and support level of 1.2410. In the coming days, if the price breaks below 1.2410 with a daily close, we will be looking forward to sell with a target towards the next support level at 1.2080. As the price remains below the 1.2640-50 resistance area, the bearish bias is expected to continue further.
