USD/CAD Increases Ahead Of Canadian CPI
The USD/CAD increased ahead of Canadian CPI / retail sales data
The USD/CAD is hitting higher for the third consecutive day awaiting Canadian CPI and retail sales reports Friday. The USD/CAD extended gains to touch the 1.3155 high on a stronger US dollar after Fed hawkish comments and rising expectations of an interest rate hike in June.
Breaking the minor resistance point 1.3108 will expand its bullish move toward the 32.8% Fibonacci retracement 1.3130, and cutting this point will open the door for an uptrend and thus continue increasing to touch topside target 1.3165 and 1.3217.
However, Canadian CPI data is expected to improve, and powerful reports will push the Bank of Canada (BOC) to normalize policy in the coming period. A break below 1.3050 might pave the way toward near-term support levels 1.3015 and 1.2980.
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