USD/CAD to extend bounce towards December peak of 1.3700 on a move beyond 1.3530 – SocGen

Canada will release inflation figures at 13:30 GMT. Economists at Société Générale highlight the key technical levels to watch in the USD/CAD pair.

1.3260/1.3220 is likely to be an important support

“CPI in Canada could be a mover today after the towering employment gains. A stronger inflation outcome could pile pressure on the BoC to delay the pause and raise rates again in March.” 

“USD/CAD is facing interim hurdle at 1.3530 representing the 61.8% retracement from December.”

“An initial pullback is not ruled out however the ascending trend line drawn since last June at 1.3260/1.3220 which is now also the 200-DMA is likely to be an important support.”

“A move beyond 1.3530 can result in an extended bounce towards December peak of 1.3700.”

See – Canadian CPI Preview: Forecasts from six major banks, downward path could see a minor detour