Canada's inflation rate stays at an 18-year high of 4.7% on Wednesday. The data point released by Statistics Canada on Wednesday morning was in line with economist expectations, tying October's level, which was the highest inflation rate since 2003. Inflation rates are soaring around the world right now, as the combination of record government spending, supply chain disruptions, and a surge in demand for consumer goods has caused prices to rise quickly.
USD/CAD is currently at a 3-month high level and on a key resistance level. Also, it is on a few spots before 1.3000. Yesterday the currency pair makes a fall breakout of the key resistance level and close below 1.2882. The traders' sentiment stays unchanged and more bulls on the market are prevail but the bears are waiting to see how the price will react from these levels. On a daily chart, they notified clear bearish divergence confirmed on MACD and RSI oscillator indicators.
If the price drop below 1.2754 it would be a clear signal that the bearish divergence is confirmed and probably more bears would be activated on the market. If the price starts to fall it can reach price levels around 1.2625 or lower to the key support around 1.2300. If this level doesn’t stop the price from falling we can see the drop to the key psychological support level around 1.2000.
If the bull sentiment on the market remains unchanged and the price break through the current price level again and stay above, it is possible to see the 1.3000 level be reached very soon.
Risk Disclosure: Trading Foreign Exchange (Forex) and Contracts of Difference (CFD's) carry a high-risk level. By registering and signing up, any client affirms their understanding of their own personal accountability for all transactions performed within their account and recognizes the risks associated with trading on such markets and such sites. Furthermore, one understands that the company carries zero influence over transactions, needs, and trading signals. Therefore, it cannot be held liable nor guarantee any profits or losses.
USD/CAD is currently at a 3-month high level and on a key resistance level. Also, it is on a few spots before 1.3000. Yesterday the currency pair makes a fall breakout of the key resistance level and close below 1.2882. The traders' sentiment stays unchanged and more bulls on the market are prevail but the bears are waiting to see how the price will react from these levels. On a daily chart, they notified clear bearish divergence confirmed on MACD and RSI oscillator indicators.
If the price drop below 1.2754 it would be a clear signal that the bearish divergence is confirmed and probably more bears would be activated on the market. If the price starts to fall it can reach price levels around 1.2625 or lower to the key support around 1.2300. If this level doesn’t stop the price from falling we can see the drop to the key psychological support level around 1.2000.
If the bull sentiment on the market remains unchanged and the price break through the current price level again and stay above, it is possible to see the 1.3000 level be reached very soon.
Risk Disclosure: Trading Foreign Exchange (Forex) and Contracts of Difference (CFD's) carry a high-risk level. By registering and signing up, any client affirms their understanding of their own personal accountability for all transactions performed within their account and recognizes the risks associated with trading on such markets and such sites. Furthermore, one understands that the company carries zero influence over transactions, needs, and trading signals. Therefore, it cannot be held liable nor guarantee any profits or losses.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.