USDCAD Chart Technical Outlook may temporarily pause rally on US CPI, resistance at 1.3621 is key
The Canadian Dollar has been on the back foot for good reasons – Canada’s unemployment rate rose to 6.6%, implying further rate cuts from the Bank of Canada, and falling oil prices. WTI Crude Oil (XTI/USD) is well below $70, hurting the Loonie. Canada depends on oil exports.
However, the US Dollar may dip in response to the US CPI inflation report. Data for August will likely show another slowdown in price rises, strengthening the case for rate cuts. I expect the Greenback to dip, temporarily pausing the rally. Nevertheless, the uptrend remains intact.
USD/CAD faces strong resistance at 1.3621, followed by 1.3683. Support is at 1.3584, then 1.3564. The pair seems to have bottomed out in late August.
