TECHNICALS: USDCAD is currently down trending in favour of the CAD, weekly trendline has recieved nearly three touches, expecting a final push to the yellow zone before a decline. shorts at the 1.30845 (61.8% retracement) and TPs at 1.27 (38.2% retracement). Just following the weekly trend since the first high and low in late june and early august respectively.
FUNDAMENTALS: CPI is expected to be realeased today at 1:30 GMT, forecasting at 0.1%, up 0.2pcp from September, therefore in terms of this particular event I’m bullish on CAD which induces a short on the USDCAD. Remember, CPI is a factor of inflation and therefore interest rates. an increase in CPI is a reflection of the increase in consumer spending.