USDCAD tests topside trend line after lower CPI
Data a bit weak but upside resistance stalls the rally
The USDCAD has moved higher after the lower than expected CPI data. The pair moved up from a pre release low of 1.3457 to a high of 1.34965. At the high is the the trend line on the daily chart , and the natural resistance from the 1.3500 level. Yesterday, the pair moved up to that line and backed off.
The back off today is limited to the 1.34859 level so far. The 38.2% of the move up comes in at 1.34813. The 50% comes in at 1.34767. A move below each gives the sellers more confidence (frustrates the longs).
I am not surprised seeing profit taking on Canada data. If a technical level gets in the way, it sorta makes it an easier decision as trader can lean and if it works, good for them. If it does not, they can always reinstate (i.e. above 1.3500).