Topside trend line stalled the pair near the highs
The USDCAD has moved to new session lows. CPI data today came in about as expected but as Adam pointed out:
Energy is a big part of the story here as prices cratered in November 2018. That's kept y/y energy prices negative every year since Oct 2018. That drop is now finally running off and prices were up 1.5% y/y.
That should lead to a creep higher. The CAD has moved higher (the USDCAD lower).
Technically, the USDCAD today did find sellers near a topside trend line (the price did peek above the line but only briefly). Failing to develop any momentum above that line, keeps control in the hands of the sellers. The price of the USDCAD started to wander lower.
That momentum has increased over the last few hours and we are currently down testing the lows for Monday at 1.31144. The low just reached 1.31157. The pair is finding some support buyers against that level with risk defined and limited. A move below should solicit more selling pressure.
Looking at the daily chart, the low price from yesterday and again today tests the low price from November (that low came in at 1.31147). The now 3 lows increases the levels of importance.
As long as the low can hold, there should be a bounce. However, on a break, I would expect buyers to turn to sellers and the price to continue the wander lower.
