The CAD fell to a 4-month low against the greenback at yesterday’s session on Geece’s optimism and hopes for the Fed’s rate hike.
Today traders eye US retail data. In case June’s retail sales come out positive, the greenback is likely to get extra boost.
The upcoming BOC interest rate is the other major factor gaining attention followed by Canada’s inflation. We expect the BOC to cut the interest rate. In case this happens, the USD/CAD pair will gain another 250 pips higher.
USD/CAD- The pair has been facing strong resistance at 1.2800. In case of a daily close above 1.2835, the pair is likely to touch 1.3060 immediately. The strong multi-resistance is expected between 1.2980 and 1.3060. Intraday resistance is seen at 1.2805. Fresh buying is available above 1.2780 with targets at 1.2800, 1.2810, and risky 1.2830. Strong buying momentum is expected above 1.2840 towards 1.2900 and 1.2950 . In case of a daily close above 1.2850, bulls will aim for 1.2980 and 1.3050. Intraday support is found at 1.2720 and 1.2700. If the pair fails to breach 1.2810, bears will head towards 1.2700 and 1.2675 ahead of the major events. In the four-hour chart, we can observe negative divergence.
The material has been provided by InstaForex Company – www.instaforex.com