Currency Analyst since 2010

USD/CAD: the odds of decline

The daily USD/CAD chart technically looks bearish. The pair breached the flag and this indicates continuation of the downtrend. The Ichimoku setup looks negative a well.

The greenback may be drawn down to 1.0775 (50% Fibo). Support lies at 1.0815. Resistance is at 1.0895 and 1.0933.

US dollar is heavy ahead of American data this week (durable goods today and GDP on Thursday). As for CAD, data on Friday showed that the annual rate of inflation rose to the Bank of Canada’s target of 2% for the first time in 2 years. That may be a reason for the central bank to tone down the rhetoric about the “downside risk to inflation” as the BOC releases its next policy statement next week.


Chart. Daily USD/CAD

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