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USD/CAD Signal - Monthly Inflation - 22 Dec 2016

Signal details
Entry Price: 
1.3430
Close Price: 
1.3495
Direction: 
Low
Expiry Time: 
21:00 GMT
Result: 
OTM
How we trade
5/5 of 3 ratings

USDCAD has pushed higher in recent days led by weaker oil prices. On the economic front, data today will include the monthly retail sales figures alongside the monthly inflation data. Headline inflation is expected to fall 0.1% on a month over month basis, while a similar forecast is expected in the core inflation as well. Retail sales figures are however expected to rise 0.2% on the headline and 0.7% on the core. This could potentially signal a near term downside risk in USDCAD.

From a technical standpoint, USDCAD's upside gains is starting to show signs of exhaustion. Near term support at 1.3400 is expected to be retested, therefore daily PUTs can be purchased at 1.3430. A break below 1.3400 could send USDCAD lower towards 1.3200 where an unfilled gap remains that could be filled in the near term. The Stochastics are also oversold on the intraday timeframes signaling the risk of a downside correction in prices.

Disclaimer: The article is written for informative purposes only and it is not financial advice. The author does not have any position in the currency pairs mentioned, and no plans to initiate a position. He wrote the article himself and expressed his own opinions. He has no business nor personal relationships with any mentioned government entities or stocks. Readers should not treat any opinion expressed by the author as a specific inducement to make a particular trade or follow a particular strategy, but only as an expression of his opinion.