USD/CAD has been quite volatile and corrective while residing above 1.2900-50 area recently. The price is currently expected to push higher in the coming days. Though CAD has been quite positive amid recent economic reports, USD gained momentum quite impulsively today in light of yesterday's rate hike.
This week, the FOMC held a policy meeting. As a wrap-up, the rate-setting commitee released a statement which showed an increase of the official funds rate to 2.00% from 1.75% previously. Though there has been certain indecision about the impact of the rate hike, USD managed to gain sustainable momentum over CAD in the meantime. Today, US Core Retail Sales report was published with an increase to 0.9% from the previous value of 0.4% which was expected to be at 0.5%, Retail Sales also increased to 0.8% which was expected to be unchanged at 0.4%, Unemployment Claims decreased to 218k from the previous figure of 222k which was expected to increase to 223k, and Import Prices remained unchanged at 0.6% which was expected to decrease to 0.5%.
On the other hand, today Canada's NHPI report was published unchanged at 0.0% which was expected to increase to 0.2%.
As for the current scenario, USD has been very positive in light of the economic reports today which led the price to be quite impulsive with the gains whereas CAD is struggling to sustain the momentum it created recently. As trading sentiment on USD is currently quite optimistic, further gains on the USD side are expected in this pair in the future.
Now let us look at the technical view. The price is now following a bullish trajectory after retesting the 1.2950 support area today. The pair is still quite volatile and corrective. The price is expected to push higher impulsively with a target towards 1.3120 resistance area in the future. As the price remains above 1.2900-50 area with a daily close, the bullish bias is expected to continue further.
The material has been provided by InstaForex Company - www.instaforex.com