USD/CAD has been quite indecisive recently after breaking below the 1.2450 event level. CAD has been dominating USD for a while now which is expected to continue further in the coming days due to recent USD economic weakness being observed. Today CAD Overnight Rate report is going to be published which is expected to increase to 1.25% from the previous value of 1.00%, which will be alongside BOC Monetary Policy Report and BOC Rate Statement today. Moreover, today BOC Press Conference is going to be held following the high impact economic reports and events. On the other hand, ahead of the upcoming Building Permits report to be published this week, today USD Capacity Utilization Rate report is going to be published which is expected to have slight increase to 77.3% from the previous value of 77.1%, Industrial Production is expected to increase to 0.4% from the previous value of 0.2% and NAHB Housing Market Index is expected to have slight decrease to 73 from the previous figure of 74. As of the current scenario, CAD economic reports to be published today is expected to have more impact than the economic reports of USD as a whole, so an increase in the BOC Overnight Rate would result to impulsive gain on the CAD side which will lead to further severe weakness of USD in the process. As the market is still quite indecisive but CAD has sustained the gains till now, which is an indication of strengthening ahead of the high impact news.
Now let us look at the technical view, the price is currently residing at the edge of 1.2450 after breaking below it recently with a daily close. Ahead of the Overnight Rate of CAD, the price seemed to be quite indecisive in nature but bears are sustaining the pressure below the event level which does indicate the upcoming momentum of the currencies in the pair. As the price remains below 1.2450 event level with a daily close the bearish bias is expected to continue with the target towards 1.2110 support area.
