USD/CAD is currently trading below the resistance area of 1.29 after recent impulsive bullish pressure. The price has been trapped inside the corrective range of 1.27 to 1.29 for a few months. Meanwhile, bulls have been the most dominant side with consistent gains. Recently due to the Federal Funds Rate hike, USD gained good momentum over CAD, so that the price is expected to move much higher in the coming days. Nevertheless, any positive economic report from Canada this month may help to offset the impulsive bullish pressure. Today, Canada's Wholesale Sales report is expected to show an increase to 0.5% from the previous value of 1.2% which is expected to have a minimal impact on the CAD progress in the coming days. On the USD side, today Existing Home Sales report is going to be published which is expected to increase to 5.53M from the previous figure of 5.48M and Crude Oil Inventories is expected to show less deficit to -3.6M from the previous figure of -5.1M. Additionally, on Thursday (tomorrow) US Final GDP report is going to be published which is expected to be unchanged at 3.3%. Besides, Canada's CPI is expected to increase to 0.2% from the previous value of 0.1% and Core Retail Sales is expected to increase to 0.4% from the previous value of 0.3%. As for the current scenario, the pair is likely to trade with higher volatility by tomorrow. So, we can have some decent understanding about the upcoming directional movement in the pair. Though USD has already have the upper hand over CAD, any positive economic report from Canada tomorrow may lead to strong CAD resilience inside the corrective range area.
Now let us look at the technical chart. The price has recently rejected off the resistance level of 1.29 which led to further bearish pressure which is currently visible today. The pair is trading above the dynamic level of 20 EMA inside the corrective range between 1.27 and 1.29. As the price remains below 1.29 with a daily close, the bearish bias is expected to continue to push the price towards 1.27 in the coming days. In any case, if the price breaks above 1.2900, the bullish pressure is expected to strengthen and push the price higher towards 1.30 and later towards 1.3250 resistance area in the future.
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