The price of USDCAD could be heading to the range lows of 1.3250, will the price get there or will the trend change?
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The price of USDCAD could continue to trade lower despite the recent move higher after the inflation rate figures. Inflation fell to 4.3% in March and the Bank of Canada Governor Macklem, has been testifying today. The Central Bank Governor stated that he sees the inflation rate declining further, although they would be willing to raise rates again, if monetary policy was not restrictive enough to reach the 2% inflation targets.
USDCAD is trading in a weekly range between the highs of 1.3850 and 1.3250. Price has recently traded through a trend line support and has since traded lower. The last time we featured this pair, we identified the potential for price to trade lower due to a shallow retracement phase. Could we see the same pattern form again? Price is trading below the daily 200 moving average and is currently using it as resistance. Price may trade higher before forming another impulsive phase lower.
The price on the chart has traded through multiple technical levels and some observations included:
- The price is trading within a range between 1.3850 and 1.3250.
- Price could continue lower if bearish price action forms at minor levels of resistance.
Have you watched our CADJPY analysis? You can see it here.
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