The US Dollar (USD) inched higher against the Canadian Dollar (CAD) on Tuesday, increasing the price of USDCAD to more than 1.2800 following some key economic releases. The technical bias remains bearish because of the lower high in the recent downside move.
USD/CAD Technical Analysis
As of this writing, the pair is being traded around 1.2840. A resistance can be noted around 1.2972, A trend line resistance level ahead of 1.3017, a major horizontal resistance and then 1.3048, the low of March 19th, 2018 as demonstrated in the given below chart.
On the downside, a support can be noted near 1.2527, the low of yesterday ahead of 1.2500, the psychological number and then 1.2482, a major horizontal support as demonstrated in the given above chart. The technical bias shall remain bearish unless it breaks the 1.2770 resistance level.
Canada’s inflation picked up steam in March, recording the largest annual increase in prices since late 2014, in another sign the economy is operating close to capacity.
Canada’s consumer-price index rose 2.3% on a one-year basis in March, Statistics Canada said Friday, following a 2.2% increase in February. The March result was just shy of expectations for a 2.4% advance, according to economists at Royal Bank of Canada .
On a month-over-month basis, prices rose 0.3% in March. On a seasonally adjusted basis, monthly prices increased 0.1%.
Considering the overall price behavior of the pair over last couple of days, selling the USDCAD around current levels can be a good decision in short to medium term.