USDCAD Chart Technical Outlook still offers a downward bias we could have a ‘double whammy’ effect on USD/CAD today with high-tier data releases for both single currencies.
We have retail sales from the United States and the all-important consumer price index, inflation data, from Canada.
Looking at the single currency charts, we have a bias for further losses in USD/CAD.
DXY (US Dollar Index) – holding within the CD leg of a Crab formation. This pattern will not be completed until 97.92. Although we saw mild buying pressure yesterday, sellers emerged close to Thursday’s Marabuzo level at 99.70. We look for rallies to be sold (bearish)
CAD Basket – we have stalled at the projected confluence zone for a Crab formation. Shorter time frames have highlighted bullish Outside Candles, often an indication of the end of a trend and the start of a new upward bias. Although the BC leg is corrective, it offers ample scope to the upside (mildly bullish)