USD/CAD has been quite impulsive with the bullish gains recently after breaking above 1.2620 resistance area which has also been retested as support. USD has been quite impulsive with the gains recently having Rate Hike prediction in March which is expected to inject more USD bulls in the process whereas CAD has been struggling with the worse economic reports. Today CAD Core Retail Sales report was published with a negative value of -1.8% decreasing from the previous value of 1.7% which was expected to be at 0.1%. At the same time, the Retail Sales report was published with a decrease to -0.8% from the previous value of 0.3% which was expected to be at 0.0% and Corporate Profits also decreased to -1.9% which previously was at 8.5%. The worse economic reports from Canada helped USD gain impulsive momentum today which is expected to push the price much higher in the coming days. On the USD side, today the Unemployment Claims report was published with better outcome at 222k decreasing from the previous figure of 229k which was expected to increase to 230k. The positive economic report with a decrease in Unemployment Claims indicates the positive developments in the US jobs market which is expected to push the currency much higher against CAD. Moreover, today the US CB Leading Index report is going to be published which is expected to increase to 0.7% from the previous value of 0.6%. The Natural Gas Storage is expected to show a smaller deficit at -121B from the previous figure of 194B, while the Crude Oil Inventories are expected to increase to 2.2M from the previous figure of 1.8M. Furthemore, FOMC Member Dudley is going to speak today about upcoming changes in monetary policy and interest rate decision which is expected to be hawkish in nature. As of the current scenario, USD is expected to take the lead in the coming days whereas CAD is expected to struggle for gains until any positive economic reports help to counter the impulsive pressure of USD gains.
Now let us look at the technical view. The price is quite impulsive and non-volatile with the bullish gains above 1.2620 and with certain retracement above the level, the price is expected push much higher towards 1.29 resistance area in the coming days. As the price remains above 1.2620 with a daily close, the bullish bias is expected to continue further.
