How to Trade USD/CAD on CPI Report?
First of all, we had to close our gold trading signal manually with 10 pips profits as the market started presenting reversal setups. Looks like it was a good idea, as gold prices are not holding below our entry price of 1,276.
At present, the USD/CAD remain in highlights due to the upcoming inflation report. In March, the CPI figure came out at 0.7%, beating February’s gains of 0.1%. An inflation rate of 0.7% is on the cards now.
On the technical side, USD/CAD is stuck in a broad trading range of 1.3400 – 1.3290. Both leading and lagging indicators are suggesting bearish bias. The RSI value is under 50 while the USD/CAD is also trading below 50 periods EMA. On the upper side, the violation of bullish breakout can lead USD/CAD towards 1.3445. While support prevails at 1.3250.
Support Resistance
1.3335 1.3393
1.3312 1.3427
1.3255 1.3484
Key Trading Level: 1.3369
A CPI > 0.70% can trigger sharp sell-off in the USD/CAD, so we might need to capture a sell as per mentioned trading levels. While an inflation rate of 0.5% or less can trigger dramatic buying in the USD/CAD pair.
Good luck!
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