The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
With the US dollar weakening after disappointing inflation data, USDCAD traded lower today, forming a double-top pattern at resistance 1.4247 and hitting a low of 1.41952. Softer-than-expected US PCE data fueled selling pressure by reinforcing expectations of a Fed rate cut. The Bank of Canada's June meeting minutes revealed a cautious, wait-and-see stance, keeping the pair sensitive to technical levels.
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Sign InOn the data front, Canada's latest inflation print on June 22 showed a 3.2% YoY rise, above the 3.0% forecast, lending support to the Canadian dollar and adding downside pressure. Per market data, USDCAD closed at 1.42021 on June 25, with the 100-hour moving average at 1.41966 serving as key support for the correction.
Traders are watching for sellers to break below the 100-hour MA (1.41966) to extend the correction toward lower levels. On the upside, the double top at 1.4247 remains a tough barrier. Next week's US jobs data and the Bank of Canada July meeting will be key catalysts for the pair's next directional move.