USD/CAD has been impulsive with the bearish gains recently which lead the price to reside at the edge of 1.30 support area. The positive economic reports of CAD published recently helped the currency to gain momentum by countering USD in an impulsive manner but the trend has not been established yet.
Recently CAD CPI Report was published with an unchanged value of 0.1% as expected and Core Retail Sales showed a significant increase to 1.4% from the previous value of 0.2% which was expected to be at 0.6%. The positive economic reports had a significant impact on the growth of the CAD gains which is still being observed in the market. This week there was no CAD economic reports or events to impact or support the gains but the sustainability of the bearish pressure does indicate the strength of CAD against USD in the process.
On the USD side, today Core Durable Goods Orders report is going to be published which is expected to increase to 0.5% from the previous value of 0.0%, Durable Goods Orders is expected to increase to 3.0% from the previous value of -0.4%, Unemployment Claims is expected to increase to 215k from the previous figure of 207k, Goods Trade Balance is expected to decrease to -67.0B from the previous figure of -64.8B and Prelim Wholesale Inventories is expected to decrease to 0.5% from the previous value of 0.6%.
As of the current scenario, USD economic reports to be published are quite mixed with the forecast which might lead to certain volatility in the pair leading to certain gain over CAD ahead of the tomorrow's Advance GDP report. Though CAD is still quite ahead with the recent gains as the USD comes up with better economic reports, a certain bullish pressure is expected in this pair.
Now let us look at the technical view. The price has been quite impulsive with the bearish gains which lead the price towards the support area of 1.30 area from where a certain bullish pressure is expected in this pair which may lead the price towards 1.32 resistance area in the coming days. As the price remains above 1.30 area with a daily close, the bullish bias is expected to continue further.
