USD/CAD has breached above 1.2450 price area recently having the recent price action as a false break. CAD has been putting pressure on USD recently amid the positive employment reports last week whereas USD was struggling due to the mixed economic reports. Today, Canada's Building Permits report is going to be published which expected to decrease to -0.7% from the previous value of 3.5%. On the other hand, today US Import Prices report is going to be published which is expected to decrease to 0.4% from the previous value of 0.7%, Final Wholesale Inventories report is expected to be unchanged at 0.7%, and Crude Oil Inventories report is expected to show less deficit at -3.9M from the previous figure of -7.4M. The economic reports from the US are expected to be quite mixed and CAD is likely to remain weak. So if the expectations are met today, then USD will be able to gain momentum over CAD for a certain period in the coming days. To sum up, a good amount of retracement is expected in this pair before CAD pushes the price much lower against USD in the coming days.
Now let us look at the technical chart. The price is currently staying above 1.2450 with a daily close, whereas the current momentum is also signaling bullish momentum with a target towards the dynamic level of 20 EMA and 1.2620 area. The recent price action seems to be a False Break below 1.2450 which empowers the bulls to push higher against the bears in this impulsive bearish trend. As the price remains above 1.2450 with a daily close, the bullish bias is expected to continue further.
