USDCAD tumbles, may extend its losses ahead.
“More losses ahead for greenback as investors wait for more signal from Fed.”
Greenback weakens further after mixed economic data which push investors to adopt a wait and see approach. Last Friday, US Nonfarm Payrolls report shows a downtrend in hiring, which may derail Federal Reserve’s call to have more interest rate hike in the future. However, yesterday’s Consumer Price Index shows a different perspective. Last month, consumer goods inflation remained at high level of 6.0% on a year-to-year basis. The data was in line with Federal Reserve’s comment that inflation remains “sticky” and it requires substantial amount of time to bring it back down to 2%.
Technical Analysis
USDCAD, Daily: USDCAD extend its losses as it retreats near the strong resistance level of 1.3880. Overall, MACD momentum which shows diminished bullish momentum suggests an extension of losses, towards the direction of next support level near 1.3500.
Resistance level: 1.3700, 1.3880
Support level: 1.3500, 1.3240
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