The USD/CAD pair rose during the North American session following weaker-than-expected retail sales earlier today. This, coupled with weaker CPI data earlier this week, paves the way for a Bank of Canada interest rate cut next week (Wednesday).
Technically, the price broke a bearish trend line, maintaining the bullish trend established by the technical breakouts to the upside this week. Earlier this week, the price moved away from the 100-day moving average (MA) at 1.3648, broke and found support against the 100-bar MA on the 4-hour chart at 1.3662, and also moved above the 200-bar MA on the 4-hour chart at 1.36867.
Despite these gains, the pair remains within the “red box” that has defined its trading range since early April, and is limited by the 1.35899 and 1.3803 levels.
At some point, this range will be broken. The trend over the past two weeks has been bullish. The main question now is whether the momentum can continue to push through the uppermost boundary of this range. Will a rate cut help or is it overdue and just lead to a turn back to the downside? The technical levels shown in this video (and this post) will help tell the story for traders.
The highest price today so far is 1.3747.
USDCAD is moving up