The USD/CAD made another bearish swing during previous week as the Canadian CPI data was better than the previous reading. The CPI is the most important inflation-related release due to its earliness and broad scope. At this point the pair is having a retracement due to the bullish divergence formed at bottom. If the pair retraces to POC 1.2635-1.2652 (ATR high, EMA89, D H4, W H3, 61.8, historical sellers) we could see a rejection towards 1.2615 and 1.2588. But if the pair doesn;t retrace to POC we could see a trend line break. Break below 1.2588 should spur a continuation towards 1.2540 and 1.2520.
W L3 – Weekly Camarilla Pivot (Weekly Interim Support)
W H3 – Weekly Camarilla Pivot (Weekly Interim Resistance)
W H4 – Weekly Camarilla Pivot (Strong Weekly Resistance)
D H4 – Daily Camarilla Pivot (Very Strong Daily Resistance)
D L3 – Daily Camarilla Pivot (Daily Support)
D L4 – Daily H4 Camarilla (Very Strong Daily Support)
POC – Point Of Confluence (The zone where we expect price to react aka entry zone)
