Thursday, 21 July 2016

USD/CAD ahead of CPI release

USD/CAD is developing in sloping upward channel, passing through last week’s low and breaking the temporary resistance coinciding with the 100% Fibo at C$1.30831.
Focusing on the channel, the pair is nearing the resistance zone around C$1.3130. This is quite an important area, where May’s and July’s highs are trending. Breaking above this spot possibly could lead the pair towards April’s high at C$1.3220.
Meanwhile tomorrow’s macro agenda will bring the CPI release and we must take into account the nearest support level located at C$1.30235.  The flirting with the key resistance might fade away and in this case bulls might be hypnotized and find a spellbound at C$1.29 zone, where key support is located, together with the monthly open.



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