The Canada Industrial Product Prices and Raw Material Prices came out weaker than expectations at -0.4% and -1.8% respectively (vs estimates of -0.2% and -0.8% respectively). This has the potential to help the USDCAD. What do the technical charts say?
USDCAD finds support at the bottom trend line.
The pair is down on the day – dipping to new lows in the current hour. The price is back up a few pips since the data but the lows have grazed a support target. A bottom trend line off of the recent lows, cuts across at the low and will now be eyed as a risk defining level. Stay above, and a further correction can be eyed. The close from yesterday comes in at 1.11674. This is not far from the low from yesterday at 1.11636. Getting above these levels will give the dip buyers more confidence that a bottom is in place. A move below the trend line (below 1.1138) would not be welcomed by those traders looking for a rebound higher.
