USD/CAD Rallies Following Canadian Inflation Data
The USD/CAD pair has rallied, reaching a new ten-day high, supported by a stronger US Dollar and weaker Canadian Dollar.
Key Factors:
- Canadian Inflation: The Canadian Consumer Price Index (CPI) declined to 1.6% in September, below expectations, suggesting that the Bank of Canada (BoC) may cut interest rates further.
- US Dollar Strength: The US Dollar has gained ground, influenced by the recent release of the US Consumer Price Index (CPI) data and expectations for further Fed rate cuts.
- Technical Analysis: The USD/CAD pair is in an upward trend, with potential for further gains.
Technical Analysis:
- Upward Trend: The USD/CAD pair has been on a ten-day winning streak, indicating a strong upward trend.
- Resistance Levels: The 1.3829 level is a key resistance level.
- Support Levels: The 1.3700 level is a potential support level.
Overall Outlook:
The USD/CAD pair is likely to remain volatile, influenced by economic data, market sentiment, and the Federal Reserve's monetary policy. Traders should monitor technical indicators for signs of a trend reversal.