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USDCAD : Remain Supported After Inflation Data, Continues to Follow Rising Channel Trend

USDCAD : Daily Chart

USDCAD continues to be supported on the daily chart today as the US consumer price inflation data continues meets economist’s expectations. According to the report the consumer prices increased .1% last month meeting the estimates and following a decline of .2% in August. On the other hand, the core consumer price inflation which excludes volatile items like food and energy costs, rose .1% in September disappointing expectations for a gain of .2%. Currently the pair is testing the resistance at 1.1274 which earlier also resisted the pair in rising further. It is expected to break above this resistance today but it might continue to trade within the channel as the resistance trend line will resist the pair in rising further.

"A separate report from Statistics Canada showed that the retail sales declined by .3% in August missing the economist’s expectations for a gain of .2% after a decline of .1% in the previous month. Core retail sales which excludes volatile items like automobile, declined by .3% in August missing the economist’s expectation for a rise of .3%."

USDCAD : 4 Hour Chart

On the other hand, the pair was following a descending triangle trend on the 4 hour chart from which it broke out after the release of the data giving a bullish signal. The nearest resistance it might find is at 1.1293 from which it might decline again. The moving averages are also heading upward signaling an uptrend continuation.