Yahoo Finance 
USD/CAD Remains Quiet Ahead of CPI Data
DailyFX.com -
Talking Points:
USD/CAD Remains Quiet Ahead of CPI Data
CAD CPI (YoY) (FEB) is Expected at 2.1%
Looking for additional trade ideas for the Forex market? Read Our Market Forecast
The USD/CAD remains quiet this morning, trading in a range ahead of today’s CAD CPI data. Expectations for this morning’s even are set at 2.1% (YoY) (FEB). This event raises the possibility that volatility may increase for the pair, and traders should continue to monitor the USD/CAD for a possible breakout.
Technically, the USD/CAD has made little progress after last Wednesdays 187 pip decline. Now the pair is consolidating in a 187 pip range. This daily range is displayed below, and has been created by referencing Tuesday’s low at 1.3263 as a value of support and Wednesday’s high of 1.3409 as a point of resistance. If prices break higher today, it would suggest that the USD/CAD is prepared to next challenge the standing March high at 1.3535. Alternatively in the event of a bearish breakout beneath support, traders may start looking for prices to retrace further towards the February 2017 low of 1.2968.
USD/CAD Daily Chart with Range
Market sentiment for the USD/CAD currently stands short of extremes, with SSI totaling -1.42. With 59% of traders short the market, this typically suggests that prices may continue to trend higher. It should be noted that traders have remained net short the USD/CAD since February 28th. If prices continue to trade higher, it would be expected to see this value remain negative. In the event of a bearish breakout, positioning could begin to shift back towards more neutral values. In this scenario, traders may elect to monitor SSI for further confirmation of a potential shift in the standing USD/CAD trend.
Want to learn more about trading with market sentiment? Get our Free guide here.
--- Written by Walker, Analyst for DailyFX.com
To Receive Walkers’ analysis directly via email, please SIGN UP HERE
See Walker’s most recent articles at his Bio Page.
Contact and Follow Walker on Twitter @WEnglandFX.
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.
Learn forex trading with a free practice account and trading charts from IG.
