USD/CAD Price Stuck Near Daily Lows, Eyes on US PPI

• The USD needs positive data to be able to take the lead again.
• A new lower low activates more declines.
• The US figures should shake the markets today.

The USD/CAD price tumbled on Friday, reaching today’s low of 1.3466. The pair has rebounded and is trading at 1.3475 at the time of writing.

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The price seems undecided as the traders wait for the US economic figures before taking action again. Yesterday, the currency pair slipped as the Retail Sales reported a 0.8% drop versus the 0.2% drop expected after a 0.4% growth in the previous reporting period. The Core Retail Sales registered a 0.6% drop even though the traders expected a 0.2% growth.

Furthermore, the Industrial Production and Capacity Utilization rate also came in worse than expected.

Today, the US economic data should have a big impact again. The PPI is expected to report a 0.1% growth. The Core PPI could announce a 0.1% growth, while the Prelim UoM Consumer Sentiment may jump from 79.0 to 80.0 points.

In addition, the Building Permits and Housing Starts data will be released as well. Positive US data boosts the greenback.

USD/CAD Price Technical Analysis: Correction Phase

Technically, a correction was bound to happen after such an impressive rally after the US inflation figures. The price found demand right below the weekly pivot point of 1.3471 and under the descending pitchfork’s median line (ml). The downside pressure remains high despite minor rebounds.

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The dollar’s deeper correction should send the pair toward new lows. Taking out the median line and making a new lower low activates more declines.

On the contrary, staying above the weekly pivot point (1.3471) and making a new higher high confirms an upside movement in the short term.

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• Source: https://www.forexcrunch.com/blog/2024/02/16/usd-cad-price-stuck-near-daily-lows-eyes-on-us-ppi/