USD/CAD is recently quite low in liquidity having very little volatility in the market this week ahead of the CAD Rate Statement and Overnight Rate report. Today there is a number of high impact economic reports is going to be published on CAD which is expected to inject high volatility in the market which is expected to disclose further directional move in this pair. Recently USD has been quite dominant over CAD with the positive economic reports whereas CAD was struggling to make a push. Today, CAD BOC Monetary Policy Report and BOC Rate Statement are going to be held which is expected to be hawkish in nature which is expected to help CAD to gain momentum against USD for the coming days. Along with these important economic events, CAD Overnight Rate is going to be published which is expected to be unchanged at 1.0% and Later BOC Press Conference is going to be held to discuss the rate decisions and future monetary policies of the country. On the USD side, today Core Durable Goods Orders report is going to be published which is expected to be unchanged at 0.5%, Durable Goods Orders report is expected to decrease to 1.0% from the previous value of 2.0%, HPI report is expected to increase to 0.4% from the previous value of 0.2%, New Home Sales report is expected to decrease to 555k from the previous figure of 560k and Crude Oil Inventories is expected to show some positive changes with less deficit to -2.6M from the previous figure of -5.7M. As of the current scenario, today the pair is expected to be quite volatile today because both currencies in this pair have several high impact economic reports and events to be held today. If the CAD economic reports come out to be positive there is higher chance that the long term bearish trend will continue to push the price lower in the future. As the general comparison of recent economic reports, USD is expected to have an upper hand over CAD with the economic reports today.
Now let us look at the technical view, price has recently quite bullish in nature which has been supported by the 1.2450 support level and dynamic level of 20 EMA. This week the bullish momentum was quite low which is expected to show a good amount of volatility today after the high impact economic reports gets published. Currently it is expected that the price will head towards 1.2770 to 1.2820 resistance area before pushing lower towards 1.2450 again in the future. A good amount of spike is expected in the market today which is expected to unfold the upcoming directional move in this pair. As the price remains above 1.2450 support level the bullish bias is expected to continue further.
