USD/CAD is currently quite indecisive after having an impulsive bearish momentum leading the price towards the support area of 1.2950-1.3050. This week the pair is expected to be quite volatile as of upcoming high impact USD and CAD economic reports and events to be held.
CAD has been quite positive with the recent economic reports whereas upcoming economic results are also expected to play a vital part in the process. Today Canada's Retail Sales report is going to be published which is expected to decrease to -0.1% from the previous value of 2.0% and Core Retail Sales is expected to also decrease to -0.1% from the previous value of 1.4%.
On the USD side, ahead of the FOMC Meeting Minutes today and FED Chair Powell's speech on Friday this week, today the US Existing Home Sales report is going to be published which is expected to increase to 5.40M from the previous figure of 5.38M. Besides, the Crude Oil Inventories is expected to decrease to -1.6M from the previous figure of 6.8M. Trump has been criticizing FED for raising interest rates recently whereas FED officials has disclosed further 3 to 4 times maximum rate hikes are yet to be done before it takes a pause which is expected to lead to further gains on the USD side in the future.
As of the current scenario, CAD has been quite optimistic with the economic reports earlier but this time the forecasts are dovish whereas better than expected result with decrease from the previous value is also expected to add to the CAD gains against USD in the process. Ahead of the high impact USD events this week, certain volatility is expected but after the CAD results today, definite momentum can be observed in the process which is expected to lead to one-way pressure in the future.
Now let us look at the technical view. The price is currently residing inside the support area of 1.2950-1.3050 whereas the price is mostly expected to push as of the bullish trend in process. As of the current scenario, a daily close above 1.3050 is needed for further bullish momentum higher with target towards 1.3300 resistance area in the future. On the other hand, a daily close below 1.2950 is expected to indicate a strong counter of the previous bullish trend which is expected to push the price much lower towards 1.2750 support area in the future. A daily close above or below the range bound of 1.2950-1.3050 is expected to inject further definite one-way pressure for the future price action in the pair. As the price remains above 1.2950 area, the bullish bias is expected to push higher for the coming days.
SUPPORT: 1.2950, 1.2750
RESISTANCE: 1.3050, 1.3300
BIAS: BULLISH
MOMENTUM: VOLATILE
