The USD/CAD has been under intense pressure in the beginning of last week testing and breaking below its multi-year low at 0,9450 to print a new fresh low at 0,9425.
We then did see the pair bouncing on friday after the release of a softer than expected CPI which means than the level of inflation does potentially not justify a rate hike over the short term. The latest price actions might open the door for a meaninful bounce but it remains to be seen.
The key level to watch on the upside is 0,97. If the market manages to establish above this resistance, we would consider that a material base is in place.
The 20 moving average at 0,96 will offer a first resistance over the immediate term.
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