This article is originally referred from TitanFX Market Analysis.
- The US Dollar moved down against the Canadian dollar, and it looks poised for more declines.
- There was a major bullish trend line formed on the 4-hours chart of the USD/CAD pair, which was broken during the downside move.
- In the US, the Consumer Price Index will be released by the US Bureau of Labor Statistics today, which is forecast to increase by 0.3% in June 2016.
- In Canada, the Manufacturing Shipment change will be released by the Statistics Canada.
USDCAD TECHNICAL ANALYSIS
The US Dollar moved above the 1.3100 level against the Canadian dollar recently, and traded as high as 1.3140. However, the USD/CAD pair found resistance and started to move down.
During the downside move, the USD/CAD pair also broke a crucial bullish trend line formed on the 4-hours chart. Moreover, the pair also traded below the 100 and 200 simple moving averages (H4 chart), which is a bearish sign.
As long as the pair is below the 100 SMA, there is a possibility of more losses in the short term.
US CONSUMER PRICE INDEX
Later today in the US, there are a couple of major economic events, including the CPI and the Retail Sales. The US Consumer Price Index will be reported by the US Bureau of Labor Statistics.
The market is expecting the price change of a representative shopping basket of goods and services to increase by 0.3% in June 2016, compared with the previous month. And, in terms of the yearly change, the CPI is expected to rise by 1.1%.
Moreover, the US Retail Sales will be reported by the US Census Bureau. The total receipts of retail store figure is forecasted to increase by 0.1% in June 2016, compared with the previous month.
If the end results are lower, then the US Dollar may come under further pressure against the Canadian dollar.
US PRODUCER PRICE INDEX
Recently in the US, the Producer Price Index was released by the Bureau of Labor statistics, Department of Labor. The market was expecting a decline of 0.1% in June 2016, compared with June 2015.
However, the result was positive, as the average changes in prices in primary markets of the US by producers of commodities in all states of processing gained by 0.3%, but it failed to help the US Dollar in the short term.
Original Source: TitanFX Market Analysis