USD/CAD drops on fundamentals

Source: Dukascopy Bank SA

Positions Today Yesterday % Change
Longs 72% 71% 1.39%
Shorts 28% 29% -3.57%
Indicator 4H 1D 1W
MACD (12; 26; 9) Sell Sell Sell
RSI (14) Neutral Neutral Neutral
Stochastic (5; 3; 3) Sell Sell Sell
Alligator (13; 8; 5) Sell Neutral Sell
SAR (0.02; 0.2) Sell Buy Sell
Aggregate

In line with expectations, the currency exchange rate tried to rise towards the 1.2711 mark that represents a point from which its Wednesday downfall has started. Nevertheless, this attempt was neutralized by a combined resistance level formed by the weekly PP at 1.2689 as well as the 55-, 100- and 200-hour SMAs. Accordingly, the first half of Friday the pair spent in a steady decline back towards the monthly PP at 1.2636.

Fortunately for the Loonie, an announcement of the Canadian CPI that matched with the experts' forecasts has only accelerated the fall and drove the rate down by 71 basis points. Most probably, the drop is going to continue by inertia at least until the weekly S2 at 1.2566. 

But as soon as markets will calm down, the buck is going to try to restore some of the lost positions and return the pair back to the 1.2657 level.

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