USD/CAD has been very low in volatility and market momentum this week after breaking below 1.2700. The price was expected to continue its bearish trend towards 1.2450 this week but due to low pressure in the market, the price is likely to be stuck in a range. CAD has been better with the market sentiment lately and mixed economic reports on USD could not quite sustain the gains against CAD which resulted to further gain on the CAD side. Even today CAD Corporate Profit report which is going to be published is expected to provide a better outcome than the previous negative value of -7.4%. If the CAD economic report comes positive we are most likely to see good market pressure on the CAD side resulting to impulsive bearish move in the coming days. On the other hand, USD Existing Home Sales report is expected to increase to 5.55M from the previous value of 5.52M, Mortgage Delinquencies report is expected to have a decreased value which previously was at 4.71% and Natural Gas Storage is expected to decrease to 44B from the previous figure of 53B. USD Economic reports are also expected to be positive in nature today, if the result comes positive today as forecasted then we might see the market being very volatile in nature and lead to more corrective price action for the coming days. To sum up, it would be very interesting to see whether CAD or USD comes up with better economic reports today which will determine the upcoming directional move in this pair.
Now let us look at the technical view, the price is currently showing bullish rejection in the daily candle though the price action was quite minimal today. As the price remains below 1.2700 resistance level in this strong downtrend, the bearish pressure is expected to continue with a recent target towards 1.2450 support level in the coming days.
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