USD/CAD has recently bounced off the support level of 1.2450 which lead to some bullish momentum along the way. Due to the recent positive economic report of USD was published the bullish pressure was quite predictable but it is considered as non-sustaining. Today USD ADP Non-Farm Employment Change report is going to be published which is expected to increase to 185k from the previous figure of 178k, Prelim GDP is expected to increase to 2.7% from the previous value of 2.6%, Prelim GDP Price Index report is expected to be unchanged at 1.0% and Crude Oil Inventories report is expected to show less deficit at -1.8M from the previous figure of -3.3M. As of the forecasts are quite positive for USD further gain on the USD is expected against CAD for the coming days. On the CAD side, today Current Account report is going to be published which is expected to show a greater deficit at -17.3B from the previous figure of -14.1B. CAD is expected to be quite weaker for a short-term period but overall CAD is still the stronger side in this pair which will lead to further bearish pressure in the future.
Now let us look at the technical view, the price is currently residing below the dynamic level of 20 EMA which is expected to lead to further bearish pressure with a target towards 1.2450 and later at 1.1950. Though recently the price has bounced off the 1.2450 the bullish pressure it is expected to be very short term.
The material has been provided by InstaForex Company – www.instaforex.com