- Canadian Dollar was seen gaining a lot of pace against the US Dollar this past few days.
- There was a support trend line formed on the hourly chart of the USDCAD pair, which was cleared recently to signal more downsides.
- Canadian Consumer Price Index (CPI) released by the Statistics Canada posted a rise of 1.4% in Feb 2016, compared with the forecast of 2%.
- Canadian Retail Sales was positive and increased by 2.1% in Feb 2016, more than the forecast of 0.6%.
The US Dollar is on a declining streak against the Canadian Dollar, as the latter one gained a lot of traction recently. There was a support trend line formed on the hourly chart of the USDCAD pair, which was broken by the bears to clear the way for more losses.
The pair is currently trading near the 1.2930-20 support area, and a break below it could take the pair towards the 1.2900 level.
On the upside, the highlighted broken trend line may be seen as a sell zone for the traders.
The Canadian Consumer Price Index (CPI) that helps in evaluation of the price movements by the comparison between the retail prices of a representative shopping basket of goods and services was reported by the Statistics Canada. The market was expecting the CPI to rise by 2% in Feb 2016. However, the outcome was disappointing, as the CPI rose 1.4%.
The report stated that “Gasoline prices were down 13.1% year over year in February, contributing the most to the overall deceleration in consumer prices. The gasoline index had increased 2.1% on a year-over-year basis in January. On a monthly basis, gasoline prices were down 6.9% in February 2016, while they had increased 9.4% in February 2015”.
In short, the USDCAD pair may correct a few pips higher, but it remains under a lot of bearish pressure.