Home Forex Forex Market Analysis Daily market update: eyes on Canada CPI

Daily market update: eyes on Canada CPI

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Traders are going to focus on Canada CPI, which indicates much about inflation level. The forecast estimates are  0.4% while the previous result was 0.6%. Two days ago the bank of Canada released its overnight rate, and it remained at 1.25%,  fulfilling all economists expectations.

Inflation in Canada is close to 2% as temporary factors that have been weighing on this factor have largely dissipated.

On the other hand, The Swiss franc reached 1.20 euro for the first time since the Swiss National Bank removed its cap on the currency, with growing satisfaction of the nation’s policymakers who have been struggling an overvalued exchange rate for the past decade.

Speaking about the troubles between USA & Syria, Russian Missiles Alarm Israel, adding to a risk of a Next Syria Crisis. Russia warned that there would be consequences. Only one of them was spelled out: The Kremlin said it may supply its Syrian ally with state-of-the-art air defenses. All of these circumstances may enhance safe haven assets

USD/CAD

On the daily chart, the price has reached supply area (1.243-1.252). which is also 61.8% Fibonacci. The price formed a flag that is considered a continuation pattern. As its RSI reached an oversold zone, and with doji & engulfing candles showing up, the price is expected to move up to the first target at 1.292.

EUR/CAD

On the daily chart, the price has broken the down trend line from its 2018  lows. Now, the pair broke the descending trend line connecting its recent highs and bounced from the support zone between 1.566-1.553. This breakthrough might drive it to 1.61 level, the last March 2018 top.

CAD/JPY

On the daily chart, the price couldn’t go further up. after rebounding from the main resistance at 85.55. It’s a combination between demand level & 50% Fibonacci

After reaching the overbought area in RSI and forming pin bar, the price is expected to go down to retest 83.5

 

© Forex.Academy

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