USDCAD Chart Technical Outlook receives mixed signals from fundamentals, waiting for the BoC meeting
USD/CAD broad bias is bullish, but short-term one could be neutral ahead of the BoC meeting due this Wednesday with an expected pause. July’s inflation in Canada increased to 3.3% from the prior 2.8% and a forecast of 3%, while the Core version was flat at 3.2% versus an expected decline to 2.8%. A pause could weigh on CAD, while a surprise hike can’t be ruled out.
DXY trades at resistance and might bounce lower after last Friday’s weak Employment data.
So, fundamentals give mixed signals. Technical indicators and retailers’ sentiment support the bullish move.
I expect sideways price action ahead of the BoC meeting and dips to attract buyers.
Resistances: 1.3640, 1.3750
Supports: 1.3510, 1.3400
