USD/CAD & Canadian's Core CPI (May): Above 1.30 or bearish formation?
In Canada at 12:30 GMT will be released the monthly Core CPI, which currently has a reading of 0.2% and analysts' forecast are calling for a little rise towards 0.3% and because the Bank of Canada takes this indicator seriously to measure inflation levels on the country, it should move the CAD pairs, whatever the number could be in this release. During last three months, it has been shown some slighlty increase.
The technical overview for USD/CAD at H4 chart is giving us a strong resistance on place around the 1.3037 level, and a support at the 1.2920 level, where is located the 200 SMA. If Core CPI is above the 0.8% or 1% approximately, Loonie could break that support mentioned above, looking to test the 50-SMA. In another scenario, a below-than-expected reading (-0.1% to the downside) could push the pair towards 1.3169 level in coming days.